…from fall in world crude oil price, but no reduction expected
The government of Ghana has reaped a saving of C53 billion from the fall in the market price of crude oil as at the end of November, this year.
The willfall would be used to service part of the debt owed by the Tema Oil Refinery (TOR), Energy Minister, Albert Kan-Dapaah MP said at the commissioning of a self-help electrification project at Kofiase near Asante-Mampong.
His statement comes in the wake of insistent calls on him and the government by the NDC minority for a reduction in the price of crude oil, following a fall in the world price.
On February 23 this year, when the government announced a 64.3 per cent increase in the prices of petroleum products, the world market price of crude oil was $31. The price is now about $18.
Mr. Kan-Dapaah said the government will neither dissipate the windfall nor reduce the prices of petroleum products.
He said by November this year, interest on the C2.3 trillion debt incurred by TOR had accumulated to C268 billion.
The minister said private cars alone consume about 50 per cent of vehicular fuel and since it does not make economic sense to continue to subsidise for a few at the expense of the masses, the government decided to increase prices of fuel to ensure full cost recovery.
He stressed that the government will not subsidise fuel for private cars when the majority of the people live in abject poverty and deprivation.
Kan-Dapaah explained the conditions that necessitated the country joining the HIPC initiative to the people and said government was sincere to admit the reality of the day to declare that the country was poor and at the same time, overwhelmed by both internal and external debts.
He sends clear indication of the government’s preparedness to continue the good policies of the former regime but noted that their mistakes will not be repeated. The government has said categorically that it will not hid to calls by the minority to reduce fuel prices despite the fall.
Meanwhile Ghanaians are divided on the issue. Whilst some think that the price should come down in fulfillment of the campaign promises of the NPP, others agree with the government that prices should not come down.
Source: GhanaWeb
