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05.04.2005 General News

No Govt Can Run Away From Key Petroleum Pricing Formuli

By PeaceFM

The Chairman of National Petroleum Tender Board, Prof. Ivan Addae Mensah has maintained that no government can run away from using the four key options of regulating the price of petroleum products.

Prof. Addae Mensah told PeaceFM today that every government that comes to power would have to either face the challenge of implementing one of the four options or suffer the consequences of the effects on the economy.

Prof. Addae Mensah said government would have to maintain the ex-refinery price and ex-pump price of fuel without passing it on to the consumer or it passes any increase in the prices of petroleum prices to the consumer.

The other options according to the technocrat are either government makes the consumer pay for the increase and reduce taxes on the products, or governments maintain the current ex-refinery and ex-pump price of petroleum products and source funding elsewhere to finance any debt that may be incurred by the Tema Oil Refinery and the Oil Marketing Companies that import and distribute the products. Prof. Addae Mensah noted that these options are so important that government cannot ignore them and expect to run the economy successfully, since oil is not extracted from the shores of Ghana.

He said notwithstanding the political and economic implications of these options, the the government cannot afford to sacrifice the economy for the sake of people riding in cars.

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