Further reduction in fuel prices will slow dev’t – Mahama

General News of Wednesday, 7 January 2015

Source: Starrfmonline.com

Mahama Ring

President John Mahama has hinted fuel prices will not be reduced further, at least not for now, because doing so will be inimical to development.

The National Petroleum Authority (NPA) announced a 10% reduction in petroleum prices early this year following a fall in crude oil prices on the world market.

However, the Minority in Parliament and the main opposition New Patriotic Party (NPP), pressure groups such as Occupy Ghana and ACEP have described the reduction as insignificant because the cutback does not correlate with the $56 per barrel on the world market.

The NPP minority is spurring Ghanaians on to take to the streets to register their protest because they believe that is the “only language” the “cheating government” understands.

However, President Mahama has given the assurance that the NPA will adjust the prices at the appropriate time. He reiterated that although oil price on the world market has slumped drastically, the Ghana government needs to use the profits to offset debt owed the Bulk Distribution Companies (BDCs).

Speaking to Angel FM Wednesday, to mark his second year in office, Mahama said out of the over Gh¢400 million owed the BDCs, government has been able to pay up to Gh¢171m.

He said it is only appropriate for his government to use the excess money to pay the debt because using taxes will “slow down development” in other sectors of the economy.

Mahama will spend most part of the anniversary day on a farm of a young cocoa farmer at Assin Senchem in the Central region. He will join the farm owner and his workers to work on the farm and use the opportunity to encourage more young people to go into large scale farming.