Fuel price reduction not politically motivated - NPA

News page 34 ,lead, (Daily Graphic), December 17/2008

Story: Charles Benoni Okine

THE National Petroleum Authority (NPA) has explained that the recent price reductions in petroleum products are not politically motivated but a true reflection of the decreasing crude oil prices on the international market.
It also noted that “these prices as announced are the result of our normal pricing calculations and nothing was artificially removed or added in arriving at these prices”.
The Chief Executive Officer of the NPA, Mr John Attafuah, gave the explanation when he addressed a news conference in Accra yesterday to react to perceptions in certain political quarters that the recent price reductions in petroleum products were done by the government to score political points.
Fuel prices were recently reduced heavily for the first time since the international market prices of crude oil hit its lowest level in more than a year.
Mr Attafuah said as per the mandate of the NPA, no individual or person was allowed to interfere in its affairs, except the sector minister, who was allowed to give policy direction.
He reiterated that the recent prices were arrived at in accordance with the laid down principles of the authority, stressing that the pertaining crude oil prices on the international market were seriously considered.
“Following the three previous reductions, it had become obvious to everybody who was following the trend in world oil prices that the NPA was likely to review prices in the middle of December so for anybody who stood to lose in the event of a price drop, the logical thing would have been to play a wait-and-see game to avoid holding excessive inventories,” he said.
He said based on intelligence reports gathered by the NPA, it was realised that delaying a new price announcement until Monday would have led to shortages on the market and would have sent the wrong signals to the public.
Mr Attafuah said it was against that background that the authority issued the new prices on Thursday, immediately after the board had met with the oil marketing companies (OMCs), for implementation the next day.
“The NPA Act, Act 691 of 2005, enjoins the authority to protect the interest of both consumers and petroleum service providers,” he reminded Ghanaians.
Mr Attafuah said while the authority expected consumers to benefit from price reductions on the world market, it was also important for the NPA to ensure that petroleum service providers did not suffer unduly.