Gov’t snubs NPP, maintains fuel prices

Users of petroleum products will have to forget about benefiting from a decrease in the prices of fuel, at least for the next two weeks.

This is because the National Petroleum Authority (NPA) has maintained the prices of fuel at the pumps in its regular review of the prices of petroleum products.

This is despite a plunge in global price of crude oil, which is selling at about 60 dollars per barrel.

On Monday, the New Patriotic Party (NPP) in a statement demanded an immediate reduction in fuel prices.

According to the NPP, the government’s refusal to reduce the prices of petroleum products to reflect the price of crude oil on the world market is “inconsiderate.”

But the NPA has indicated it will not reduce petroleum prices because it is taking advantage of the price drop to save money to defray the debt owed Bulk Oil Distribution Companies (BDCs).

Petrol continues to sell at 3 cedis 39 pesewas per litre, Diesel at 3 cedis 30 pesewas, Kerosene at 3 cedis 25 pesewas and Liquified Petroleum Gas (LPG) for 2 cedis 94 pesewas per kilogram.

The Energy Minister, Kofi Armah Buah, earlier stated that government cannot risk reversing fuel prices.

He explained to citifmonline.com that, outstanding debts owed the Bulk Oil Distribution Companies (BDCs) must be paid immediately to avoid bringing most of the banks on their knees.

“The BDCs also owe various banks in the country huge sums of money, so it is only prudent for the state to use windfalls from the current local price levels to help clear the prevailing debt,” he stated.

There have been several calls for government to reduce fuel prices.

The Deputy Minority Leader in Parliament, Dominic Nitiwul, in November, asked government to reduce fuel prices drastically as crude oil prices on the international market hit a four-year low.

The New Patriotic Party (NPP) also reiterated calls for government to reduce fuel prices.

Source : citifmonline.com