TUC against fuel price increase
The Trades Union Congress (TUC) says the nine per cent fuel price increase by the National Petroleum Authority (NPA) has neutralised the positive effects of the recent 10 per cent reduction in fuel prices.
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Rather, it said the hikes had worsened the already harsh economic conditions Ghanaians were forced to cope with, especially, at the time when businesses were laying off thousands of workers because of erratic power supply.
In a statement issued in Accra last Monday, the TUC said the increase in the fuel prices had always taken place at a time when there was rising cost of living and doing business.
“We find it extremely appalling that in this period of a crippling energy crisis and its attendant debilitating effects on the economy and on the economic and social conditions of the people , the NPA had found it convenient to increase prices of petroleum products in the interest of the so-called Bulk Oil Distributing Companies (BDCs) at the expense of the entire population of Ghana, “the statement said.
According to the statement signed by the General Secretary of TUC, Mr Kofi Asamoah, the NPA’s explanation that the increase was due to the rise in global prices of petroleum products and the depreciation of the cedis did not warrant the increment.
“We believe that the overriding factor that has led to the increase has to do with the pressure the BDCs are putting on the NPA,” it said.
Background
The NPA last Sunday increased the prices of petroleum products by nine per cent.
With the upward review in prices, premium will now sell at GH¢3.33 per litre, instead of GH¢3.05, while a litre of diesel, which was sold at GH¢2.97, is now GH¢ 3.24.
According to the NPA, recent occurrences on the world market had affected the prices of petroleum.
The last time the NPA increased fuel prices was on November 19, 2014, following the imposition of a 17.5 per cent tax on petroleum products which resulted in a three per cent increase in petroleum prices.
The Minister of Finance
, Mr Seth Terkper, had submitted a bill to Parliament requesting the approval of a special petroleum tax policy which would see the introduction of 17.5 per cent VAT on petroleum products.
Parliament approved the 17.5 per cent Special Petroleum Tax bill.
The last ex-pump price review was also made on January 1, 2015, which was a 10 per cent reduction.
Harsh economy
The statement recalled that when crude oil prices on the international market dropped, the NPA disregarded the adjustment formula for pricing petroleum products and thereby denied Ghanaian household substantial savings.
“After a persistent outcry from the Ghanaian public, NPA only reduced fuel prices by 10 per cent in January, 2015,” it said.
The statement said the increase in petroleum prices had not only neutralised the positive effects of the 10 per cent reduction on consumers but it had actually worsened the economy.