Pulse.com.gh logo

Rip Off? OMCs flout approved margins for fuel increases

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.

  • Published: , Refreshed:

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.

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.

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."

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos

Top Articles

1 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
2 Incompetence Otabil wasn't qualified to be Capital Bank Board Chairman...bullet
3 Breaking Otabil finally breaks silence on banking controversiesbullet
4 Education Top 5 private high schools in Ghana according to WAECbullet
5 Salaries In 2018 Here are the dates public workers will be paid...bullet
6 Nana Appiah Mensah Menzgold CEO invited by EOCObullet
7 Banking In Ghana Stranded customers of First Allied Savings...bullet
8 Tax Policy Gov't weighs in on controversial MoMo taxbullet
9 $100K Saga Presidency denies having knowledge of...bullet
10 Collapsed Banks Here are the auditing firms for the 7...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Money Alert Meet Africa's richest womanbullet
3 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
4 Plane Crash Starbow suspends operations following plane crashbullet
5 Former Capital Bank staff grills pork for survivalbullet
6 Support Finance minister buys Kantanka carbullet
7 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
8 Bozoma Saint John 10 quotes from Uber top official,...bullet
9 Tech 6 reasons you should buy an iPhone SE instead of...bullet
10 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet