Business News of Wednesday, 24 October 2018
Motorists should brace themselves for some good news in the coming pricing window as the National Petroleum Authority hints of a possible reduction in fuel prices.
The Chief Executive Officer of the Authority, Hassan Tampuli has suggested that the current trend being witnessed on the market has given a positive indication and is likely to result in prices at the pumps going down.
Hassan Tampuli singled out the recent appreciation of the Ghana Cedi against its major trading currencies especially the dollar and the fall in world crude prices as major developments which will influence the prices at the pumps in the coming window.
The NPA CEO asserted that if the situation remains the same then motorists should rest assured of a possible reduction that will ease the burden on them.
“The consuming public should rest assured, that the benefits of the falling price of products on the international market as we have observed, will be felt in the next pricing window. As of today, the Ghana Cedi has made some gains against the United States Dollar and the nearly 2% decrease in the price of diesel and petrol as well as the observed 8% decrease in the price of LPG will be passed on to the public through pump prices, all things being equal. That is how a deregulated market works,” Hassan Tampuli highlighted.
Addressing stakeholders of the downstream industry, Hassan Tampuli charged stakeholders to constantly monitor the components that influence the prices as they are updated on the NPA website to ensure that everyone is on the same page at every point in time.
He stated in his speech that “to further keep all stakeholders informed of expected changes in prices of petroleum products for every window, the Authority publishes “Daily Price Indicators” on its website and a number of newspapers. The Daily Price Indicators shows the changes in the key components on the price build-up such as the GHS/USD exchange rate and the international prices of petroleum products. These components vary every pricing window and directly affect domestic prices. This can be accessed on the Homepage of the Authority website: http://www.Authority.gov.gh/”.
Help us educate public on price build-up – NPA boss to stakeholders
The NPA CEO also called on stakeholders present at the forum to assist his outfit in educating the public on the factors that influence the pricing at the pumps and the mandate of the NPA.
He explained that the role of determining fuel prices at the pump was taken away from the Authority in 2015 after the amendment of the price deregulation policy, Regulation 14 of L.I. 2186.
The industry pricing regime is now determined through the open market system, limiting the mandate of the NPA in influencing pump prices.
NPA, Hassan Tampuli stressed, only determines prices of Aviation Turbine Kerosine, Gasoil Mines, Marine Gasoil, Premix Fuel and Residual Fuel Oil (RFO).
“Adjustment of prices of petroleum products by Oil Marketing Companies (OMCs) this week for the 16th – 31st October pricing window and the reaction by some interest groups reminds all of us that there is a lot more we all have to do to educate the general public on the tenets of a deregulated industry and its ramifications,” the CEO pleaded.
“Following the implementation of the price deregulation policy in July 2015, the responsibility of setting ex-pump prices of petroleum products shifted from the Authority to petroleum service providers (i.e., Bulk Distribution Companies (BDCs) OMCs). The only products whose prices are still determined by the Authority are Residual Fuel Oil (RFO), Premix Fuel, Aviation Turbine Kerosene (ATK), Gasoil Mines, Marine Gasoil Foreign and Gasoil Rig,” he outlined.
Hassan Tampuli was speaking at the petroleum downstream industry meeting at the National Petroleum Authority office in Accra on Wednesday.
The meeting brought together all stakeholders in the industry to discuss challenges facing them, highlight the potentials and address issues confronting stakeholders in the industry.