Re: Reducing fuel floor price commendable, but...Paul Twum Barima

The MP, Mr Paul Apreku Twum, may perhaps want to know that the underlying spirit behind the NPA Act 2005 (ACT 691) in relation to deregulation, zonalisation and price-floor is morality, not wanton greed and personal aggrandisements.

Imorality is not quantified in figures. It is always absolute.

Therefore, any law or policy not founded on morality is bound to fail. The NPA Act regulates, oversees and monitors activities in the petroleum downstream.

It also ensures fair-trading activities among members, fair-pricing, and, significantly, ensures growth in the petroleum industry.

It is painfully clear that the policy of deregulation, for example, is being misinterpreted, and or distorted by some to satisfy their selfish and parochial interests. Admittedly, deregulation encourages competition, but a healthy one. 

The type that brings in its trail new ideas, new practices, new methods and innovations.

Not greed bordering on fraud and subterfuge.

Therefore, any company that impetuously and greedily extends its operations well beyond the structure and size of the local market will surely face financial problems and, by extension, loudly cry for a review of the floor price policy.

Therefore, the seemingly naked and persistent agitation to torpedo the fuel floor price may be seen in this light and should be rejected.

Apart from its inherently unfair trading practice, it is seriously anti-growth, as small but hitherto thriving companies (fingerlings) are unable to match their seemingly 'low' prices without the potential risk of folding up business.

Petroleum floor price has the potential of creating cartels, forging collusions and third-party purchases, which are all frowned upon by the Act.

Floor price is never in the interest of consumers as fraudulently claimed, but solely and essentially to line private pockets.

Reducing, suspending and fuel tax holidays have been the surest and altruistic way of making fuel prices bearable to consumers

 This is what is done in countries that are genuinely concerned with the plight of consumers.

The USA, for example, plans to suspend the federal gas tax or introduce a gas tax holiday in the wake of the current high fuel price arising due to the US/Iran war, not the floor price.

Indeed, some states have already started implementing or reducing taxes to reduce or hold plump prices at bay.

Paapa Stephens ACP (Rtd),
Director, Kaysens Gas Company.