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While Ghanaians are locked down and crude oil prices have dropped drastically on the international market, the Akufo Addo administration through the National Petroleum Authority (NPA) has secretly ordered for increases in petroleum and LPG prices.
Additionally, LPG rates would be exceptionally higher because the government has introduced a new tax into the prices of LPG called the Cylinder Recovery Margin
Whatsup News is in possession of a directive from the NPA to Oil Marketing Companies (OMCs) effectively asking them to increase ex-pump prices of petroleum products.
“Kindly note that the revised Ex-pump Price Template effective 1st April 2020 includes the following: Fuel Marking Margins has been revised fromGHP3/lt to GHp4.5/ Lt and introduction of Cylinder Recovery Margin (CRM) of GHp12.5/kg for LPG,” Richard Opoku Nyantakyi, a Pricing Officer at the NPA wrote to OMCs.
World market prices for crude oil are currently at all-time lows, for instance, US crude oil prices fell below $20 a barrel on Monday, close to their lowest level in 18 years, following the Covid-19 coronavirus pandemic and the price war between Saudi Arabia and Russia.
However, instead of reducing prices of LPG and petrol, the government has increased taxes on the pricing mechanisms of the product in what will force OMCs to start increasing ex-pump prices.
Earlier this week, LPG consumers were stranded at LPG filling stations. Experts now say this was due to anticipation of OMCs to see the government’s new pricing mechanism and adjust their prices accordingly.
Former Ghana National Petroleum Corporation (GNPC) boss, Alex Mould on his Facebook posts today was livid with the realisation that the Akufo Addo government was increasing petroleum and LPG prices instead of the reduction yearned for by consumers.
He wrote: “Did the President sit down for John Peter Amewu to introduce and increase new margins in the Petroleum Price Build-up? Why will the NPA unilaterally enforce this without informing the public? This is the time to show empathy and not rape consumers. The timing is soo wrong!!”
Alex Mould notes that the move was “bad and unfair” to consumers.
When world market prices of crude oil increases force increases by local OMCs, the government have often argued that it had no control over the prices as they are determined by market forces.
However, the plan to introduce new taxes and margins on each litre of petroleum despite the drastic reduction on world market prices shows that the government’s argument has been mere deception, critics say.