body-container-line-1

A Gallon Of Petrol In Germany Is Two Times The Price In Ghana - Asaga

By Myjoyonline.com
Business & Finance A Gallon Of Petrol In Germany Is Two Times The Price In Ghana - Asaga
MAY 18, 2015 LISTEN

The chief executive of the National Petroleum Authority (NPA), Mr. Moses Asaga has mounted a robust defence of the Authority’s decision to increase fuel prices by nine percent.

He said the increases were to prevent another problematic build-up of subsidies which may affect the ability of bulk oil distribution companies to bring in petroleum products.

Mr. Asaga accused opposition leader Nana Akufo-Addo of dishonesty in his criticism of the increases.

Following the announcement of new prices for petroleum products Sunday, Mr. Akufo-Addo said government was insensitive to the plight of ordinary Ghanaians .

For him, the increases could not be justified on the face of a crippling power crisis which is collapsing businesses and lead to job losses.

But Mr. Asaga disagreed, saying the price of fuel was far higher in some other countries especially Germany and the United Kingdom.

He said the New Patriotic Party flagbearer - who is currently in Germany from where he criticized the government for the fuel price adjustment – ought to have known that it costs more to buy a gallon of petrol in that country than in Ghana.

According to the former Nabdam legislator, a gallon of petrol in Germany costs $6.48, compared to $3.3 in Ghana. He was speaking to Joy FM's Super Morning Show host, Kojo Yankson, Monday.

“In Germany where Nana Akufo-Addo was yesterday, a gallon of petrol is $6.48; in Ghana today, a gallon of petrol is $3.3; in UK last night a gallon of petrol was $7.68…and therefore if we are doing $3, 30 cents a gallon and Amsterdam where were import [our products] from is doing $6.48 per gallon, I think that people shouldn’t take us out as if we are insensitive,” he said.

Mr. Asaga wondered why the Ghanaians who were listening to NPP flagbearer didn't draw his attention to the fact that they pay more for fuel in Germany compared to their compatriots back home in Ghana.

"There is a lot of intellectual dishonesty," he stressed.

In any case the increment is only 28 pesewas per litre and it is ‘affordable for us the middle-class,’ he stressed.

The NPA boss said that government had been able to mop up an amount of $412 million owed BDCs by February 16, this year.

He said it was absolutely necessary that subsidies are completely removed and total deregulation of the petroleum sector undertaken to remove the albatross of subsidies from government’s neck.

This, he said will be good for all politicians.
“I think that [going] into the future, the best thing for Ghana will be deregulation and removing the myth of petroleum pricing…and we believe that when it is deregulated, whether it is NPP or NDC or CPP which is in government, a deregulated system will bring more peace to the politicians and to government,” he explained.

For Mr. Asaga it is better to pay a little more than have a situation where petroleum products are not available on the market because unpaid subsidies have led to huge debts.

Chief Executive of the Chamber of Bulk Oil Distribution Companies, Senyo Hosi, confirmed the $412 million which had been owed BDCs was paid by February.

He, however, said since February, close to $150 million had accrued again because of under recoveries.

Mr. Hosi believes the nine percent increase may not be enough to completely eliminate subsidies.

body-container-line