Gov't Refuses To Reduce Petrol Prices -Despite Global Oil Price Drop

Emmanuel Armah-Kofi Buah, Minister of Energy.
Crude oil prices on the world market are rapidly declining but government has refused to nudge the National Petroleum Authority (NPA) to reduce the prices of petroleum products to reflect the change.

From an average of $109 per barrel in January this year, the price of a barrel of crude oil dropped to $81.14 on October 14 2014.

Some pressure groups, including the Alliance for Accountable Governance (AFAG), have raised concerns due to the situation.

In a statement issued recently, AFAG noted that 'when we consider the haste with which the NPA increases fuel prices during world oil price upsurge, AFAG wonders why government has not shown similar faith with respect to the fast declining prices of crude oil on the international market over the past three months.'

It continued: 'If the cedi is indeed appreciating against the major currencies (i.e. falling from 3.8 to 3.1/$), why on earth must we be undermined by government.  We consider this behavior of government as sub-human and disrespectful.'

Paradoxically, in 2008 when the world oil prices surged from an average of $60 per barrel to $140 per barrel, a gallon of petrol was 3.50 pesewas in Ghana. However, in 2014 amidst oil production, and with world oil prices of crude less than $82 as of now, Ghanaians are buying a gallon of petrol at over 15 Ghana cedis. This is rather ridiculous.

'AFAG considers this development as a rip-off. The deafening silence by the president is shockingly inappropriate. Mr. President, show some leadership and concern here. Ghanaians need an economic lifeline. We want fuel price reduction now! Life in Ghana is hell. We are sick and tired of this high level insensitivity.'

The Ministry of Energy and Petroleum Resources, reacting to the call for a reduction in the price of fuel recently, noted that it would not review the prices downwards.

It did not enumerate reasons for its refusal to reduce prices despite the change on the world market.

Reports say the government had hedged the price of crude oil.

By Samuel Boadi