Fuel prices readjusted downwards after stakeholders’ meeting

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Fuel prices at the pumps have been reduced by 8 pesewas per litre. The reduction is to take effect today. This brings down the recent 17 pesewas per litre increase announced by the National Petroleum Authority (NPA) to 9 pesewas per litre.

This was contained in a communique issued yesterday by stakeholders in the fuel sector after a meeting held at the Ministry of Energy.

The meeting was held between the Minister of Energy, Dr Matthew Opoku Prempeh, on one hand, and the National Petroleum Authority (NPA), Association of Oil Marketing Companies (AOMCs), Bulk Oil Storage and Transportation Co Ltd (BOST), Chamber of Petroleum Consumers (COPEC) and the Institute for Energy Policies and Research (INSTEPR), on the other hand.

The communiqué announcing the decision was signed by the Minister of Energy, NPA, BOST, AOMCs, COPEC and INSTEPR.

“The 17 pesewas per litre increase in fuel margins previously announced by the NPA has been reduced to 9 pesewas per litre effective tomorrow Wednesday 5th May 2021,” the communique stated.

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Increment

Following the implementation of the newly reviewed taxes on fuel, the margin on prices of petroleum products went up by 17 pesewas per litre.

The reviewed taxes include a 5.7 per cent increment in prices of petrol and diesel as part of new levies proposed by the government.

Until the recent increment, prices of petrol and diesel, which were both selling at an average price of GHC 4.7 per litre in December 2020, went up to an average of GHC 5.74 as of mid-March 2021.

As of yesterday, some Oil Marketing Companies (OMC) were selling petrol and diesel at GHC 6.13 per litre at the pumps.

The consistent increase in the prices since the beginning of the year sparked fears that consumers may end the year paying an all-time high rate per litre.

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Adding to the anxiety of petroleum consumers, the 2021 budget also introduced a new 10 pesewas Sanitation and Pollution Levy as well as a 20-pesewa levy to cater for charges on the country’s excess power capacity subject to parliamentary approval.

Fare increment

Following the increase, some transport operators had hinted of increasing lorry fares.

The Ghana Private Road Transport Union (GPRTU) disclosed that fares were expected to go up by between 10 to 15 per cent by tomorrow, Thursday.

According to the Union, they are currently in discussions with government and are hopeful of finalising negotiations by today for the new fares to be announced.

The Industrial Relations Officer for the Ghana Private Road Transport Union (GPRTTU) in the Greater Accra region, Alhaji Abass Imoro, was among the stakeholders in the transport industry who hinted that transport fares were going to be increased due to the high fuel prices.

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In a media interview, he said increasing fares was the only way to ensure that transport operators survive.

“After the budget, we started planning also the way to go about it and now they have come up with the petrol, we are waiting for the road toll. It is also on the way coming.

“Definitely tomorrow (today), if God permits, our leadership will come up with very reasonable percentage [increase in transport fares] as to how to move forward,” he said.

“Most of the time, it is very difficult, it is very painful, but without that we cannot survive. Look at the surrounding countries around us, is that the way they have been increasing their fuel products? The answer is no,” he added.

It is, however, unclear if the new development will change the position of the transport operators relative to the fare increment.

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