The Chief Executive Officer of the Chamber of Bulk Oil Distributors, Senyo Horsi has described as “preposterous”, calls demanding a 50% decrease in the prices of petroleum products.
The National Petroleum Authority (NPA) had early on reduced the prices of fuel by 10% to reflect the sharp drop of crude oil prices on the world market however; there have been various calls from the minority in parliament and other pressure groups demanding a further reduction.
Pressure group “Occupy Ghana” argues that the prices should be reduced by 50% since crude oil prices have fallen by about 50%.
According to Mr. Horsi, those demanding that reduction are ill-informed.
“50% reduction on crude oil (prices) does not necessarily translate into 50% reduction on products. That’s one misinformation that seems to be out there. Crude is a key input for production of refined products but it is not the only input. So when [crude] drops 50% does not mean everything should also drop by 50%”, explained Senyo Horsi.
Before announcing the 10% reduction on petroleum products, the NPA initially refused to reduce prices because it wanted to clear the debt it owed the Bulk Oil Distribution Companies
Senyo Horsi said those calling for further fuel price reduction do not seem be interested in debts owed them by government.
Government’s total debt owed the Bulk Oil Distribution Companies, according to him, is currently in excess of Ghȼ1.5 million.
“I have hardly heard any debate from the Minority or the Majority talking about how our debt will be paid” lamented Mr Horsi.
Business World (with notes from myjoyonline)