There have been strong public reactions to the 30 percent increase in prices of petroleum products announced by the National Petroleum Authority.
As the new prices take effect Tuesday morning, one of the groups which will be hardest hit is the Association of Ghana Industries (AGI). Executives of the association say the sector is already grappling with high costs of production and credit which have rendered them less competitive.
AGI president Nana Owusu Afari says industries may be forced to lay off workers while others could fold up.Nana Owusu Afari
He said the price increases will have a ripple effect on the cost of doing business and consequently the ability of industry to expand their operations and create jobs. Mr Afari was also worried that investors may be discouraged from investing in the country. He appealed to managers of the economy to take decisions bearing in mind the peculiar needs of industry.
A leading member of the Committee for Joint Action and editor of the Insight newspaper, Kwesi Pratt says the increment is not justifiable. He questioned the Mills administration’s promise to drastically reduce fuel prices.
“When this government was in opposition they spoke about a reduction in the level of taxes, they spoke of hedging as an alternative, they spoke about alternative source of energy and many other measures. Now what happened to all the brilliant ideas they had when they were in opposition?”
He rejected suggestions that then candidate Mills’ promise to reduce prices of petroleum products drastically was rendered useless by President Kufuor’s 17 percent reduction in the price of the product.
“Well I’ve heard that argument but it is important to note that even after President Kufuor had reduced the price of fuel, the NDC still promised to reduce it further. And indeed in those days the argument was made that the increases in the world market price of crude oil was not sufficient justification for increasing ex-pump prices,” Mr Pratt stated.
He said there is no justification for the present increases.