10% cut in fuel prices is drastic reduction – Mahama


President John Mahama says Ghanaians cannot continue to demand a reduction in fuel prices and still expect meaningful development in the country.

Justifying the ten per cent reduction in the prices of petroleum products, the president said Ghanaians cannot eat their cake and have it.

He was speaking with Kumasi based Angel FM, Wednesday.

The NPA and government have been under pressure to further reduce the prices of petroleum products in accordance with a slump in international market prices of the product.

Crude oil is now selling at $57 per barrel the lowest in about five years. It was hovering at around $120 per barrel at the beginning of 2014.

Following a heavy slump in the prices, many Ghanaians expected a corresponding reduction in the prices on the local market but the NPA said it had to recoup losses it made when the crude oil prices were over a $100 a barrel.

The regulator also insisted it had to pay debts owed to Bulk Oil Distribution Companies.

Corroborating the assertion of the NPA, President John Mahama said the government has a responsibility not only to pay the debts owed the BDCs but also to embark on some development projects.

He said the NPA can reduce the price of the commodity further but that will mean some development projects would have to be sacrificed.

President John Mahama said the NPA can save some money when the prices are relatively low so that when the prices begin to go up again there, will be some level of mitigation.

He said the constant demand for fuel price reduction will not help because it is with revenues generated from such windfalls that development projects are done.

He said the ten percent reduction is very significant and called on Parliament to initiate processes for some mitigation levy to be set up in order to save some of the windfall money for the future.

The president also appealed to Ghanaians to support him deliver on the better Ghana promise he made during the 2012 elections.

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