Reducing fuel prices instead of cutting taxes on petroleum products dangerous, says COPEC
The government this week directed the Ghana Oil Company (GOIL) to reduce its fuel prices to bring some relief to consumers
The Chamber of Petroleum Consumers Ghana, (COPEC) has described the move by the government directing the nation’s oil marketing company, GOIL to reduce its fuel prices as a dangerous move.
The Ghana Oil Company (GOIL) earlier reduced fuel price by 15 pesewas after a directive from President Nana Addo Dankwa Akufo-Addo.
It comes after Monday’s meeting between the government and transport operators at the Presidency over their sit-down strike.
Checks by www.asaaseradio.com show that the reduction took effect Tuesday morning with a litre of fuel at GOIL now selling at GHC6.70 pesewas.
But in an interview with Asaase News on The Big Bulletin, executive secretary of COPEC, Duncan Amoah said the government must rather reduce taxes on petroleum products and not set a bad precedence of instructing an oil marketing company that plays within the deregulated market to reduce its prices.
“For us, as consumers, any reduction is a good thing and we are happy that we’ll be paying less with radio especially with GOIL. The only challenge here is that this is also very dangerous if we continue on this trajectory. We’ve seen a lot of state-owned enterprises or companies that have collapsed due to some of these interferences, especially in their economic and financials.”
“If we have a situation where the state can just wake up and instruct an OMC playing within the deregulated space to reduce fuel prices and not taxes, then that’s dangerous precedence which should not be allowed to continue,” he stated.
Fuel pricing in Ghana is deregulated, meaning prices at the international market have a direct impact on prices locally.
Nicholas Brown
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