ï¿½Ye wu oooï¿½ was what a taxi driver told The Mail newspaper when asked to comment on the increase in petrol prices over the weekend. The twenty or so taxi drivers who spoke to the Mail said they sensed the increase will come again when some petrol stations were not selling their products though it was evident that they had some in stock.
ï¿½We knew there would be an increase, because for some time now, the stations have not been sellingï¿½some even donï¿½t sell more than 20 cedisï¿½, a taxi driver said. Last weekendï¿½s five per cent (5%) increase in the prices of petroleum products is the third increment this year. In less than four months after being voted into office, the National Democratic (NDC) increased petroleum prices by 10%.
When Crude oil prices were at $64per barrel in June, fuel prices were increased for the second time by 30%. Petrol was sold at GH1.11 per litre, representing approximately GHï¿½5.00 per gallon while diesel was going for GHï¿½1.12 per litre representing GH5.04 per gallon.
A gallon of petrol used to sell for GHï¿½3.80 while diesel was selling at GH4.00 per gallon. Kerosene which before the NDC came to power used to sell at 66.50Gp per liter, was until last Weekend sold for 86.45Gp per liter, representing GHï¿½3.90 per gallon while premix fuel was going for 51.48Gp per litre from the previous 39.60Gp per litre. Price of LPG also shot up from 61.40Gp to 79.00Gp per kilo.
With crude oil now selling at $80 dollars a barrel, the National Petrol Authority (NPA) announced in a statement the price of petrol has been increased to GH52.6(5%increase). ï¿½The increase follows hikes in crude oil prices in the world market which hovers around $80 per barrel,ï¿½ the statement said. Media reports had earlier speculated that there would be price hikes but equally speculated that the government would absorb the increases. After a meeting between stakeholders last Friday, the decision was taken to pass on the marginal price hikes to consumers.
The NDC promised during the 2008 general election campaign to reduce the prices of petroleum products no matter how much crude would cost on the world market. Professor Mills declared on December 12, 2008 that 100 days after receiving the countryï¿½s leadership baton from outgoing President J.A. Kufuor, he would honour the pledge, in addition to waiving taxes on petroleum products. Reacting to the reduction in fuel prices on December 14, 2008 by former President Kufuor, the then candidate John Evans Atta Mills posted on his website, www.attamills2008.comï¿½: ï¿½we have noted with much interest the announcement that prices of petroleum have been reduced with immediate effect from 6a.m of December 12, 2008.ï¿½
The announcement, the NDC said, was in obvious response to the outcome of the December 7 elections and to Prof. Evans Atta Millsï¿½ assurance to the people of Ghana that when he assumed office as the next President of Ghana, he would reduce drastically the prices of petroleum products. ï¿½We note that the announced reductions are completely at variance with the prices that should be in place in consonance with the prescribed petroleum pricing formula.
As a result, the new announced prices are far above what they ought to beï¿½Indeed, spot prices of petroleum products on the international market indicate that a reduction of 20-30 percent (and not the 14-20 percent announced by the NPA) is the appropriate margin that would bring the prices abreast with the levels that should prevail on the Ghanaian market, in compliance with the prescribed petroleum pricing formula,ï¿½ the NDC said. ï¿½In our viewï¿½, said the NDC at that time, ï¿½the NPA is in contravention of article 58(1) of the NPA Act (Act 691,2005) and is clearly colluding with government to exploit the already impoverished Ghanaian consumer by unjustifiably and blatantly misapplying the prescribed petroleum products formula to overcharge consumers. We call on Government to compel the NPA to further reduce the prices of petroleum products in line with the international trends and in a transparent and accountable.ï¿½
Now barely one year into the life of the administration, reality has set him and after an initial decrease to satisfy the campaign process, it is three times in a rowï¿½
Source: The Mail
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