[ 2016-10-11 ]

Fuel prices likely to go up again
The Chamber of Petroleum Consumers Ghana, has
forecast a likely 7-13 percent fuel price
adjustment beginning Sunday October 16.

According to the Chamber, “the decision for cuts
in OPEC production levels seem to have taken a
toll on world price indexes as prices on the world
market have surged by between 7-13% as of today.
Trading between $51-$53.15/barrel from previous
levels of $44-$46/barrel."

“These galloping movements are certain to have
direct and dire consequences on local pump prices
in a deregulated market in the next pricing window
set to commence on the 16th of October,” a
statement signed by the Executive Secretary of the
Chamber Duncan Amoah Tuesday stated.

In the last few months fuel prices have gradually
been increased to almost 15 percent due to the
steady rise in Crude on the World market.

The statement added, “the news of government
decision yesterday to reduce marine gas oil by at
least 20% is welcoming, just as the earlier
decision in June to reduce the cost of aviation
fuel by 25%.

“The two reduction efforts above gives Ghanaians
and for that matter the chamber of petroleum
consumers the confidence and an indication of
every possibility of government adjusting
downwards in same vein the levels of taxes on
petrol and diesel to cushion both private and
commercial road users.

“It is worth reminding government that it set
for revenue purposes in the 2016 budget export
prices of $53/barrel, which at the end of last
year was hovering around $43/barrel that
necessitated the introduction and passing of the
energy 2015 energy sector levies Act, leading to
an increase in fuel prices by up to 27%.

“It is our belief that government will as a
matter of urgency reduce the tax levels to absorb
the fast rising increases in prices of crude and
products on the world market to forestall any
imminent increases in pump prices. The price
stabilization margin charge on petroleum products
also needs to be be reviewed to be sensitive and
to respond to the changing trends in prices and
not treated as a revenue levy as is currently
being applied across board.

“The chamber further re-emphasise the need for
the national petroleum authority ( NPA ) to shelve
the recent announcement on sulphur levels in
diesel to one unified acceptable and safer
standard instead of the announced 500ppm and 10ppm
disparity for the same market.

“We believe it is a matter of priority at this
stage in Ghana's downstream development process to
make the necessary investments in the only
refinery serving the country; the tema oil
refinery, this has become even more urgent
following the research by Public Eye/Acep on the
hazards associated with high sulphur products on
vehicles, the environment and public health,
subsequent to which there's broader acceptance by
the bdcs to import 10ppm immediately the standards
are changed to reflect same.

“The cost of these high sulphur products on our
markets cannot be tolerated any further and we
will do anything neccesary to ensure safer
standards and products are applied to the
unsuspecting public. For the avoidance of doubt,
10ppm is 10ppm and not 10ppm or 500ppm as is
currently being stipulated for coming January,
2017.

"Accepting the two simultaneously in one market
will eventually lead to a net reduction in the
quality being demanded, once we allow these two
incomparable standards to co-mingle in the same
market without any clear working plan.

“We further urge the repositioning of the only
petrochemical laboratory currently at tema oil
refinery together with its hard working
technicians to be reassigned to an independent
entity to protect the integrity of the testing
process for all players in the petroleum
downstream."

Source - Starrfm

... go Back