BDCs reject calls for further fuel price reduction

Bulk Oil Distribution Companies have come to the defence of government over calls for more than 10% reduction in prices of petroleum products.

Chief Executive Officer of the Chamber of Bulk Oil Distributors, Senyo Horsi, says mounting pressure on National Petroleum Authority (NPA) to review prices of fuel prices is misinformed.

Following a steep fall in world market prices of crude oil by about 50%, the petroleum regulator, NPA directed a 10% reduction in prices at the pumps for all products.

However, some analysts, the Minority and pressure groups have launched scathing attacks on government over the 10% reduction — they say reduction does not reflect the dwindling prices of crude oil.

The Minority has called on the public to take to the streets to compel authorities to further reduce prices.

Pressure Group Occupy Ghana says fuel prices should have been reduced by 50% instead.

But the bulk oil distributors say suggestions for a 50% reduction are preposterous.

“50% reduction on crude oil (prices) does not necessarily translate into 50% reduction on products. That’s one misinformation that seems to be out there. Crude is a key input for production of refined products but it is not the only input. So when [crude] drops 50% does not mean everything should also drop by 50%”, explained Senyo Horsi.

Senyo Horsi said those calling for further fuel price reduction do not seem be interested in debts owed them by government.

Government’s total debt owed the Bulk Oil Distribution Companies is currently in excess of Ghȼ1.5.

“I have hardly heard any debate from the Minority or the Majority talking about how our debt will be paid” lamented Mr Horsi.

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