Fuel hike demo strange – NPA
The National Petroleum Authority (NPA) has described a planned
demonstration by the Chamber of Petroleum Consumers (COPEC) and
Industrial and Commercial Workers Union (ICU) over fuel price hikes as
anything but noble.
COPEC, has served notice that it will embark on a demonstration
Wednesday morning over the incessant increase in the prices of petroleum
products.
According to the Chamber, the demonstration, which is in
collaboration with the ICU, is to force government to further reduce
taxes on petroleum products.
A litre of petrol currently sells for 4 cedis 62 pesewas at some major fuel stations across the country.
But a statement by the Corporate Affairs Division of the NPA stated
that the NPA has made several by way of the Price Stabilisation
interventions over the past three (3) months.
According to NPA “petroleum products have been on the rise on the
international market. For instance the prices of petrol and diesel on
the international market have increased cumulatively by 17% and 19%
respectively since November 2017.”
The statement also added that under the “current price deregulation
regime which has been in effect since July 2015, price volatility on the
international market is expected to directly impact domestic pump
prices because government has no direct control over the setting of the
bi-weekly prices of petroleum products.”
Below is the full statement
The National Petroleum Authority (NPA) has received notice of an
intended demonstration by the Chamber of Petroleum Consumers (COPEC) and
Industrial and Commercial Workers Union (ICU) ostensibly in response to
recent increases in price of petroleum products at the pump by some
selected Oil Marketing Companies.
We do recognise that the right to demonstrate for or against any
course is a constitutionally guaranteed one and COPEC will be acting
within its right as such.
We are however of the considered view that the reasons for the
intended demonstration are anything but noble having regard to the
interventions made time and again by the NPA by way of the Price
Stabilisation interventions over the past three (3) months. The truth of
the matter are as follows:
1. Prices of petroleum products have been on the rise on the
international market. For instance the prices of petrol and diesel on
the international market have increased cumulatively by 17% and 19%
respectively since November 2017;
2. Under the current price deregulation regime which has been in
effect since July 2015, price volatility on the international market is
expected to directly impact domestic pump prices because government has
no direct control over the setting of the bi-weekly prices of petroleum
products;
3. However, being concerned about the impact of the upward trend of
international market prices on domestic product prices, government has
since December 2017 used upfront, the expected receipts from the Price
Stabilisation and Recovery Levy (PSRL) in the price build-up as a
mechanism to bring stability to prices;
4. Since 1st February, 2018, for instance, the PSRL which hitherto
were GHp12/Lt on petrol and GHp10/Lt on diesel have been completely
neutralized to reduce the impact of rising prices on the international
market on Ghanaian consumers. This means that government has forfeited
the revenue it would have collected on these products for the period 1st
– 15th February, 2018 in order to cushion consumers;
5. This intervention by the government has brought down the expected
increase of petrol’s price for the period 1st – 15th February, 2018
from 5.06% to 2.16% and from 3.60% to 1.26% for diesel;
6. Despite the expected increases above after the intervention, the
actual price changes observed on the market at the moment range between
0.66% and 1.08%;
7. It is worthy to note that the large majority of Oil Marketing
Companies (OMCs) still have their prices unchanged whilst some have even
reduced their prices, and consumers are at liberty to purchase
petroleum products from OMCs with competitive prices as expected under a
price deregulated regime; and
8. The consuming public is hereby assured that the National
Petroleum Authority will continue to monitor the prices of petroleum
products on the market to ensure that they are set in conformity with
the Prescribed Petroleum Price Formula.
We wish to advise all interested groups that need further clarity on
the current state of petroleum product prices to contact the NPA for a
discussion. This will ensure that the public is not misled by those who
are motivated by reasons other than those of national interest.
Signed
Corporate Affairs Division
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