Petroleum price deregulation is a rip off – Dr. Steve Manteaw

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The Integrated Social Development Centre (ISODEC) says the passage of the deregulation law has not aided Ghanaians positively.

The deregulation policy was implemented in 2015.

According to proponents of the policy, it will help sanitize the downstream petroleum sector.

The deregulation policy allows Oil Marketing Companies (OMCs) to fix their own prices, in an attempt to introduce competition to the ultimate benefit and protection of the consumer.

Latest price adjustments by oil marketing companies for fuel, shows an increase of between 4 and 4.5 percent for petrol and 2 percent for diesel.

According to ISODEC, government needs to strategize petroleum prices to the benefit of consumers.

But the Campaign Coordinator of ISODEC, Dr. Steve Manteaw tells Citi Business News the policy will not benefit Ghanaians.

“Since we have been on this trajectory, all the benefits that have accrued from deregulation have accrued to government and they are often misused them through dubious contracting and waste of public resources. At a time that consumers are supposed to benefit, government quickly moves in to impose taxes and rips off what is supposed to accrue to consumers…So they are always changing the goal post yet they say they are deregulating. By imposing taxes, you are regulating the price level.” He stated.

Meanwhile, Dr. Steve Manteaw disagrees with calls for the NPA to be scrapped off following the implementation of the deregulation of the petroleum downstream sector.

Dr. Manteaw believes the National Petroleum Authority is doing a good job in ensuring consumers get value for the product.

“For every sector of the economic life, you need to bring some sanity beyond just the pricing so I am pretty sure the NPA will be regulating standards … I think they are still relevant in maintaining standards and are ensuring that consumers get value for the money they pay.”

 

Source: citifmonline

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