Gabby backs fuel prices increases

Gabby Otchere Darko, Executive Director of the Danquah Institute, has on Multi TV and Joy Fm's Newsfile backed fuel price increases announced by the National Petroluem Authority yesterday.

The National Petroleum Authority (NPA) made an upward adjustment on prices of some petroleum products effective June 1. Both Petrol and diesel will now be selling at GH¢9.50 per gallon.

“Its the way to go “, the Executive Director said. Gabby said he has always maintained the position that in matters of petroleum pricing, the market should dictate not politics.

He added that government was also open to adopt cross subsidization policies “if it works”.

Cross subsidization is the practice of charging higher prices to one group of consumers in order to subsidize lower prices for another group.

According to Gabby, allowing the market to dictate the prices allowed ghananians to plan their finances better.

He said in view of a growing public understanding of the dynamics of petroleum pricing it was time for government to focus on efficiency in the management of petroleum revenue.

Co-panelist Nana Ato Dadzie, a former Chief of Staff referring to the Dr. Limann regime said governments in the past were overthrown for announcing fuel increment.

He said because of public outrage, governments in the past usually backed away from adjusting fuel prices until it became inevitable.

Eventually, he said, when increments were made it caused serious public trauma. He said the debate about fuel price increases and subsidies was “ten years late”.

Kweku Baako, editor-in-chief of the New Crusading Guide newspaper countered. He felt the debate was 30years late. Dr. Limann, president under the third Republic of Ghana would be “ turning in his grave” at the apparent acceptability of fuel price increment, he asserted.

He referred to a parliamentary debate on 29th April 1981 where Samuel Odoi-Sykes of the then People's Convention Party (PCP) condemned planned fuel prices increment because it would "push up prices of goods and services and make life unbearable”.

The late Peter Ala Adjetey who was the Member of Parliament for Kpeshie and the leader of the United National Convention (UNC) also opposed president Hilla Limann.

These condemnations he said cumulatively led to the overthrow of Dr. Hilla Limann. He agreed with co-panelists that there was the need to now focus on efficiency in management of petroleum revenue after we had “gone full circle”.