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07.07.2008 Feature Article

Time For A Fuel Policy

By Graphic
Time For A Fuel Policy
07.07.2008 LISTEN


When Volta electricity failed and we had serious rationing of electricity, we became imaginative about possible sources of energy.

The experts and dreamers expatiated on gas, wind power, solar energy, tidal power and atomic energy. A high powered committee was officially established to revisit the rejected Nkrumah's idea of atomic energy.

 

There were negotiations with gas companies at high levels which also engaged in esoteric energy production debates.

With the electricity crisis over, at least temporarily, we seem to have relaxed on our concern for energy. But we should not wait for another crisis before we develop an energy policy.

So far as fuel is concerned, we should elaborate a policy now. The fuel policy should be a part of the energy policy. With fuel prices as they have been for some time now, we should have a policy which will enable us to withstand possible rude shocks.

As I write, the news has it that oil prices are hovering around US$140 a barrel. Four years ago, it was US$40 a barrel.

 

The Network Herald of March 31–April 1, 2004, reported the then Energy Minister, Dr Paa Kwesi Nduom, as saying in an interaction with the media that “if prayers and hope failed and crude prices rose to US$40 and above, the National Petroleum Tender Board would be left with no other choice, but alert oil marketing companies for advice on the steps to take.

 

The paper added that what was said was “a euphemism for a hike on the prices of petroleum products”. The situation is much more serious today

The price increases have been taking place, against the background of governments reluctance to lose public support.

 

Increases are often delayed while ways and means are explored so that the right decisions may be avoided.

 

Sometimes, pressure is put on Ghana Commercial Bank to ignore normal banking procedures and fund imports of crude oil.

I suppose that is why our development partners want Ghana Commercial Bank to be privatised. I am against this because the national bank in a developing country like Ghana, while doing normal banking to make money, should assist selected local enterprises which would promote rapid economic growth.

We may be developing, and so we are not children. Our governments should be mature enough to take unpopular measures in the national interest. If they cannot, they should quit.

We have to pay for the crude oil, we import to supplement our energy and maintain and improve the economy. In deed, we are paying for it already.

Apparently, we are using the proceeds from the rise in cocoa prices and other exports to pay for the high prices of the fuel we consume.

 

This means development in certain areas are delayed or stopped, while we consume petrol for pleasure or for non-essential services.

We need a policy which will enable industry and essential services to procure fuel at prices to compete successfully in the global village.

 

The policy should help reduce fuel consumption for non-essential private requirements.

Of course, it will not be easy to fashion such a policy. Its implementation will require some complicated rules and regulations. And we as a people are not noted for keeping to rules.

 

But if we are to survive as an independent nation we have to endure some discipline when necessary.

It may be asked whether such hard choices are necessary when oil has been discovered off our shores. The fact is that we would not be enjoying the fruits of this discovery for a few years.

 

 And we must survive in the short term. If we refuse to suffer a little to have a better future, we would become a client state living on charity in the midst of handsome resources.

We should not exaggerate what we would get from the oil find. Oil exploration is very expensive, and the investors must recover what they have sunk in.

 

Moreover, they continue to invest while they search for more oil. Nevertheless, we should think hard about the agreements we make.

 

We should make as much possible for the state and not for individuals. Political decisions should be informed by expert knowledge.

 

Our leaders should not sell the spoils of the oil find for a mess of potage even to Ghanaians.

Already, the modest development that has taken place in the country recently has made a few people rich, while a great number remain poor.

 

The gap between the rich and the poor has widened. This poses social and political problems which should be addressed. Proceeds from the oil find should not widen the gap.

 

We need an oil policy evolved and implemented by leaders who are not corrupt or greedy.

Right now, I find petrol prices too high and I have to curtail my movements.

 

This is mainly due to the low pensions we receive. But many of the active young who must move also find petrol prices exorbitant.

And yet, the realistic policy I am advocating implies a rise in petrol prices for the ordinary Ghanaian.

 

We have to accept the hardship until the oil find and realistic economic measures make life more pleasant through high salaries and congenial social services.

We should not be deceived by politicians who promise the moon, if only we would vote for them to obtain power. Hard times are ahead. But we are a resourceful people.

 

We would overcome with condour, hard work and leaders committed to the welfare of the people.

 

By K. B. Asante

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