Wednesday, March 31, 2010

Government Absorbs Fuel Increase For 2 Weeks

The government has decided to absorb the expected increase in fuel prices in the country for the next two weeks. Government subsidy on fuel between March 16 and April 15, this year amounts to GH¢12million,according to the acting Chief Executive of the National Petroleum Authority (NPA), Mr. Alex Kofi Mensah Mould.

He told the Daily Graphic yesterday that the government decided to absorb the expected increase when the NPA informed it of the rise in the price of oil by 10 per cent since October last year. “There is not going to be any increase in fuel prices. The government has decided to absorb the fuel price,” Mr. Mould said.

He said the price of oil hovered between $75 and $80 per barrel. He said the NPA was still monitoring the market and indicated that if the increase was temporary, the NPA would not recommend any increases in the prices of fuel. He explained that that was to curtail any increases in transportation fares, since transport owners increased transport fares whenever fuel prices were increased but refused to reduce the fares if fuel prices went down.

Mr. Mould said if the price of oil hit above $80 per barrel or the increases in fuel prices remained permanent, the NPA would recommend an increase in fuel prices. In the same way, he said, if the price of oil went down to between $65 and $70, the NPA would recommend a reduction in fuel prices. He said the government was sensitive to the effect of fuel prices on consumers. Mr. Mould said the NPA had held a stakeholders meeting with the Ministry of Information, the Ghana Private Road Transport Union (GPRTU and the Ghana Transport Association on how to protect consumers.

Daily Graphic

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