Reduction in fuel prices welcome, but...
Two things happened on the eve of the New Year which should make some impression on Ghanaians.
Advertisement
After a long struggle with civil society groups, motorists and the public, the National Petroleum Authority (NPA) last Wednesday decided to reduce the prices of petroleum products by 10 per cent.
Then the President, in his nationwide address to usher in the New Year, asked Ghanaians to not despair but have hope that there would be a turnaround in 2015.
The challenges of 2014 were so biting that many people wished that the year passed as quickly as possible. Therefore, the assurance of good things to come from the First Gentleman of the land is refreshing news.
Many people and businesses cried loudly against the high prices of petroleum products when there was a slump in the price of crude oil on the international market, the lowest since 2009.
Although many people have said the price reduction does not reflect the reality on the world market, it is still something for which Ghanaians should be thankful for.
The expectations of Ghanaians might not have been met, but they should accept this in good faith and engage the NPA in more discussions on the matter.
It is understandable that when the NPA is indebted to the bulk oil distribution companies (BDCs), it is the people who will bear the brunt. Therefore, any effort to clear the debt must be supported by all.
Unfortunately, in the past the NPA had not been very transparent in its dealings with the people. As of now, we wonder whether anybody can tell the exact price of a litre of gasoline or diesel.
When, in November last year, Parliament, under a certificate of urgency, imposed a Value Added Tax (VAT) of 17.5 per cent on petroleum products, consumers were confused, although the government explained that not all the 17.5 per cent would be imposed on consumers but just about 3.5 per cent.
It appears that since the government has found the petroleum sector a lucrative area to raise revenue, it is quick to increase prices, and even in cases where there have been windfalls, the consumer does not feel the effect.
Ghanaians, by nature, are very tolerant, accommodating and understanding and, therefore, prepared to accept efforts by the government to raise revenue to develop the country.
Presently, we know that some people, including members of the Diplomatic Corps, are VAT exempt. So the question is, what is the price of a litre of petrol, since any product or service that attracts VAT has its own unit price on which the VAT is calculated?
The Daily Graphic appeals to the NPA to tell consumers the unit price of a litre of petroleum products on which VAT is calculated.
When there is accountability and transparency in the mobilisation and management of public resources, then the likelihood is that the people will rally behind the government in the implementation of such policies.
Whatever the challenges that confront us in nation building, the President is upbeat about 2015 and we believe that all Ghanaians deserve a break from the challenges of 2014.
For this reason, the Daily Graphic encourages everybody, no matter his or her political affiliation, to join hands to transform the economy for the betterment of Ghanaians.
Whatever the reactions to the fuel price adjustments, we think the move by the NPA is commendable and will help alleviate the sufferings of the people.
We welcome 2015 and wish that it brings good tidings and prosperity to all.