The Minority National Democratic Congress (NDC) has charged government to alleviate the hardship of Ghanaians by reducing the prices of petroleum products.
According to the opposition, Ghanaians deserve at least 20% reduction in the pump prices due to challenges emanating from the lockdown announced to deal with the Coronavirus pandemic.
Ranking Member of the Committee on Mines and Energy, Adam Mutawakilu, in a statement stressed that the lockdown has worsened the burden of Ghanaians, especially small and medium scale enterprises.
“The Minority Caucus has analysed the trends in prices of crude and petroleum products since the beginning of the year and is of the firm belief that prices at the pumps should be reduced by at least 20%.”
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“Therefore, a significant reduction in the prices of fuels is non-negotiable as the pandemic is exacting a toll on businesses with most companies scaling down their operations and others laying-off workers,” he stated.
Read the full text of the statement below:
A CALL ON GOVERNMENT AND THE OIL MARKETING COMPANIES (OMC) TO REDUCE PRICES OF PETROLEUM PRODUCTS BY AT LEAST 20%
The Oil Marketing Companies (OMCs) and the National Petroleum Authority (NPA) on Tuesday, 17th March 2020 announced a reduction in the prices of petroleum products for the second week of March 2020.
The average reduction was about 4.7%, which is far below the expectation of the average Ghanaian and a breach of the automatic adjustment mechanism adopted by Government and the OMCs.
The reduction of about 4.7% in prices at the time was far lower than the about 15% promised by the Minister for Energy and the Chief Executive of the NPA.
It is recalled that the NDC and COPEC had earlier called on the OMCs and the NPA to reduce the prices of petroleum products by about 20% in view of a record slum in world prices and the stability of the cedi against major international currencies, particularly the U.S. dollar.
The Hon. Minister for Energy, Mr. John Peter Amewu, at a media briefing and reported on 13th March 2020 promised the public that prices will be reduced by about 15%.
The Chief Executive of the NPA, Mr. Hassan Tampoli, on the same day Programme, reiterated the position by the Hon. Minister for Energy that prices will be reduced by about 15%.
Unfortunately, the call by the NDC and COPEC was not heeded to by the Government and the OMCs and accordingly maintained the marginal reduction of 4.7%.
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Since the close of the second week of March 2020, prices of crude and finished products continue to tumble in the international market. The Minority Caucus has analysed the trends in prices of crude and petroleum products since the beginning of the year and is of the firm belief that prices at the pumps should be reduced by at least 20%. This is evidenced in the following analysis of international oil prices vis a vis local market prices:
DEVELOPMENTS IN THE INTERNATIONAL MARKET AS AT FRIDAY, 27TH MARCH 2020
| Brent | Gasoline (Petrol) | Gasoil (Diesel) | |
| Jan 2020 (W1) | $66.7/bbl | $616/mt | $606/mt |
| Mar 2020 (W4) | $25.9/bbl | $210/mt | $305/mt |
| Reduction | $40.8/bbl | $406/mt | $301/mt |
| Reduction (%) | 61% | 66% | 50% |
DEVELOPMENTS IN THE LOCAL MARKET AS AT FRIDAY, 27TH MARCH 2020
| Gasoline (Petrol) | Gasoil (Diesel) | Cedi/Dollar | |
| Jan 2020 (W1) | ¢5,36/L | ¢5.36/L | ¢5.36/$ |
| Mar 2020 (W4) | ¢4.85/L | ¢4.85/L | ¢5.7/$ |
| Reduction (¢) | ¢0.51/L | ¢0.51/L | (¢0.34/$) |
| Reduction(%) | 9.5% | 9.5% | (6%) |
From the analysis, the percentage reduction in prices between the first week of January and fourth week March 2020 for Gasoline and Gasoil was 66% and 50% respectively. On the other hand, the depreciation of the cedi to the U.S. dollar over the period was only -6%.
Unfortunately and in a bizarre twist, the reduction in the price per litre between the first week of January and fourth week of March 2020 for Petrol and Diesel was only 9.5%.
A reduction of at least 20% is particularly imperative in view of the challenges facing Ghanaians in light of the measures introduced by Government to deal with the Covid-19 pandemic. The call for an additional reduction of 20 percent takes into consideration the fall in crude oil (31%+) and Petrol (50%+) on the international market over the last two weeks. A significant reduction in the prices of fuels in non-negotiable as the pandemic is exacting a toll on businesses and most companies are scaling down their operations with others laying-off workers.
The lockdown in Greater Accra and Greater Kumasi announced by H.E. the President on Saturday, has further worsened the burden of the average Ghanaian, including small and medium scale entreprises.
The least the Government can do at this critical stage to mitigate the suffering and hardship faced by the average Ghanaian is to reduce fuel prices by at least 20% taking into account the massive drop in the price of crude and finished products in the international market, which are currently not reflecting at the pumps.
HON. ADAM MUTAWAKILU (MP)
Ranking Member, Committee on Mines & Energy
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By Uthman A. Marani/Frontpageghana.com/Ghana
