Dr. Mohammed Amin Adam
Dr. Mohammed Amin Adam, Executive Director of African Center for Energy Policy (ACEP), says with the implementation of the deregulated policy, the fortnight adjustment of prices of petroleum products is no longer necessary.
Speaking to BUSINESS GUIDE in an interview, the ACEP boss stated that with abolition of the fortnight fuel price adjustment, the decline or rise in crude oil prices would reflect immediately on the domestic market.
“This is why ACEP called for daily adjustment of prices because if we have deregulation, why do you have the fortnight window? It is no longer necessary. If international prices of fuel products fall today, we must see it reflecting in the domestic prices of petrol and diesel and not to wait until two weeks, otherwise consumers will not benefit from the decline in international prices,” Dr. Adam said.
He added that Ghanaians should have seen a reduction in domestic prices of petroleum products with the recent drop of crude oil prices on the international market.
“But because of government’s reliance of the fortnight fuel price adjustment, if there would be any reduction at all, it would take two weeks to reflect at the pumps.”
The price of crude oil on the international market as at yesterday was $27 per barrel, but consumers in Ghana are paying more at the pumps due to the heavily imposed taxes and levies by government.
“You should know that the prices of petroleum in Ghana are adjusted fortnightly. So if you have a reduction in fuel prices today or even in the petroleum product price today international petroleum product prices today, you will not see a reduction in domestic price until the window for price adjustment is triggered and new prices are expected to be brought out by the BDCs and OMCs,” he noted.
He stated that the recent increases in petroleum prices domestically were due to the imposition of taxes and levies.
“Indeed, at the time the increases were announced, crude oil prices, as well as international price of petroleum products were declining. So we should have seen a decline in domestic prices of petroleum products.”
By Nii Ogbamey Tetteh