OMCs flout approved margins for fuel increases

quist

January 5, 2016 8:33 AM

According to the report Parliament approved a 5.18% increase for the price of petrol, 2.90 percent for Gas Oil and 1.74 percent for LPG.

Documents concerning the New Energy Sector Levies have revealed that parliament approved a 5 percent increase in fuel prices and not the 27 percent as has been the case after the approval.

The information was captured in the report by the Committee on the Energy Sector Levies Bill 2015.

According to the report, the Finance Minister Seth Terkper told Parliament that the Bill sought “to realign petroleum related taxes by implications on the ex-pump price of petroleum products which would be announced Wednesday December 23, 2015.”

However, prices have gone by 28% at the pump much to the dissatisfaction of some Members of Parliament on the minority side as well as sections of the general public who feel ripped off by the Bulk Oil Distribution Companies.

Reacting to the situation on Accra based Citi Fm, the head of the Chamber of Bulk Oil Distributing Companies, there seems to be a disparity between what the minister of finance want BDCs to charge as the increment and what the actual price build up plus the tax comes to.

" I cannot speak for the ministry of finance and for parliament, but the price at the pumps right now just reflect the increment in taxes. That is the difference. "

Senyo Hosi then suggested that the Ministry of Finance may not have done their calculations to reflect the situation on the ground and as stipulated by the petroleum pricing formula under the Petroleum Downstream Deregulation Policy.

" I do not know what went into the Ministry of Finance' calculation of high the fuel prices must go. The petroleum pricing formula is clear on how prices are calculated and we OMCs follow this to the latter. Every Ghanaian can calculate the prices for themselves using the components. We have been very transparent in the pricing."

It is therefore unclear whether the ministry of finance misled parliament into passing what is believed to b a lesser increment in fuel prices, or the Oil Marketing Companies are reaping Ghanaians off.

Meanwhile, Minority MP for the Adanse Asokwa Constituency, K.T Hammond has charged the National Petroleum Authority to curb what he describes as rip off by the the Oil Marketing Companies or he heads to court.

" The setting of indicative prices is the job of the National Petroleum Authority. I wonder why they are silent on the matter. They must out to put the Oil Marketing Companies back on track."

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