File Photo: Fuel price has been increased seventeen times
The Chamber of Petroleum Consumers (COPEC) has given the government a two-week ultimatum to make an intervention that will ensure that the prices of petroleum products are reduced.
Contributing to the issues surrounding the increment of fuel hikes on Tonton Sansan on TV XYZ, the Head of Pricing and Monitoring at COPEC, Sampson Addai, stated that should the government act to reduce fuel prices, his outfit will lead a massive demonstration to protest the incessant fuel hikes.
“We at COPEChave given the government a two weeks ultimatum to help reduce the price of fuel else we will lead Ghanaians to hit the streets,” Addai told host Prince Minkah.
“Fuel price has been increased seventeen (17) times yet we have not ended the year. If care is not taken, would end the year with a few hikes,” he added.
NPA’s Reaction
However, reacting to the issue, the Communications Manager at the National Petroleum Authority (NPA), Mohammed Abdul-Kudus indicated that the government was putting measures in place to reduce the price of fuel.
This is after the NPA had approved the removal of the Price Stabilisation and Recovery Levies (PRSL) on petrol, diesel, and LPG for two months, beginning from November.
Apart from that, he said the price was still high because of the hikes on the global market, forcing importers to channel the cost to the consumers.
“Basically it’s world crude prices that virtually is a greater determinant of the fuel price at the pump,” he said, adding that the situation has been so since 2015 after the implementation of the petroleum pricing formula.
“You have the cost of the fuel on the world market and also, the issue of the forex; exchange rates are those [factors] that trigger the change,” he stated.
Asked by the host what the NPA does to cushion petroleum consumers, he explained that apart from the direct impact of the NPA in deregulation, the Authority also advises the government through the relevant Ministries.
“We at NPA don’t determine price; we at NPA don’t determine taxes. we only regulate what has been determined…We have advised the government and the government has listened to us, but unfortunately, the prices are going up.”
He does not believe there will be a further price increment as Christmas approaches, saying their forecast and projections do not depict so.
But Sampson Addai suggested that some taxes such as Special petroleum tax, Fuel marker margin, sanitation levy and BOST margin must be scrapped to reduce the prices of fuel.
He also asked the government to reduce the ESLA levy, adding ” if we are not able to do this, petrol price will be around GHS 34 cedis before the year ends.
He added, “as we are approaching Christmas, there will be pressure on the dollar. International market prices and foreign exchange differentials are all likely to affect average pump prices of petroleum products.”