OPEC Likely To Crash Oil Prices Below $10 -As Ghana Sends Petrol prices through the roof.

The National Petroleum Authority (NPA) has been put on a hot seat as the Chamber of Petroleum Consumers Ghana (COPEC) has warned it to immediately withdraw clandestine taxes it has sneaked into petroleum products to deprive citizens of the drastic drop in world market prices of petroleum.

Lawyer Martin L. Kpebu Esq on March 3, 2020, wrote a letter to the NPA demanding the immediate withdrawal of the secret taxes.

“I act as lawyer for the Chamber of Petroleum Consumers Ghana (COPEC) and the Consumer Protection Agency (CPA), on whose instructions I write to request that you withdraw with immediate effect the cylinder investment margin (CIM) imposed on petroleum products in clear violation of law,” Lawyer Kpebu wrote.

According to the lawyer, the NPA imposed the taxes without approval from the Ghanaian Parliament.

“My clients being good citizens, support the Government’s quest to develop Ghana and as part of the efforts to develop Ghana to raise funds through various endeavours including the imposition of taxes and levies, howbeit in a manner that is sensitive to the conditions of the Ghanaian citizenry.

The anger among oil marketing companies is coming in the heels of last week’s order by the NPA for margins of up to 70 pesewas per litre of petroleum products and some hefty levy called the CIM to be imposed from April 1, 2020.

Consumers are expecting the government to significantly reduce petrol prices and not the introduction of taxes that will keep petrol prices high in Ghana despite the reduction in the world market.

The ongoing oil market volatility, the battle between leading producers for market share, the logistical impossibility of enforcing U.S. production cuts, and the continued demand destruction caused by COVID-19 are reported to be a catalyst that will drop crude oil prices to as low as US$10 per barrel in the coming days.

The Organisation of Petroleum Exporting Countries (OPEC) is expected to meet on Monday, in what may result in crude prices crashing.

OPEC is planning to cut production by as much as 10 million barrels per day to offset the imminent crash in crude prices. But expert think that the task will be almost impossible as the organisation will have to convince its hard-hit members to cut badly needed oil revenues.

Countries such as Libya, Iran, Iraq, Brazil, and Canada, are unlikely to agree at present to cut production, say experts.