New petroleum prices come into effect this morning. The oil marketing companies will decide on how much to sell the various products but they should fall within limits approved by the National Petroleum Authority.
The price of premium petrol will be pegged at a maximum of 42,000 cedis, diesel at 38,200 and kerosene at 34,505 cedis.
The price of liquefied petroleum gas will go up by 22 percent. The Industry Co-ordinator of the Oil Market Companies, Kwame Antwi Adjei, explains how the increments were decided.
“The world market price weighed heavily on whatever you observe at the proms. Because the last time, the review was done the crude barrel was selling about $61/$62. We went as far as 78 but I must say that we came down the recent path by some 2 dollars or something. So certainly the world market price tasted it so there was very little we could do as an oil importing country”.
Mr. Antwi Adjei defended the increases in the prices of liquefied petroleum gas and kerosene.
“What is happening is that if you look at the price build up, there is a subsidy given to kerosene and the internal reason was that it will go to the poor or to the rural folks. With what is happening around, certainly it is not getting to the target for the purpose for which it had been instituted so I think there's some justification in narrowing the gap”, he said.