Fuel Prices drop again

Front page (Daily Graphic), December 12/2008

Story: Charles Benoni Okine

FUEL prices have been reduced heavily for the first time since the international market prices of crude oil hit its lowest level in more than a year.
The new prices, which take effect from 6 a.m. today will see premium petrol selling at Gp82 per litre from the previous price of Gp99 per litre.
This means that 4.5 litre (one gallon) of petrol will now sell at GH¢3.69 instead the previous figure of GH¢4.45 for the same 4.5 litre (one gallon).
According to the National Petroleum Authority (NPA), gas oil will now sell at Gp89 per litre from Gp104 per litre, while kerosene would be sold at Gp70. In this case, 4.5 litre (one gallon) of diesel will now sell at GH¢3.15 instead of GH¢4.05 for the same 4.5 litres (one gallon).
Premix fuel, the product specially made for fishermen, has also dropped from Gp63.2 to Gp44. Here too, 4.5 litre (one gallon) will nowGH¢1.98 sell at GH¢1.98 instead of the former price of GH¢2.84.
The new price of Liquefied Petroleum Gas (LPG) will also be Gp65 instead of Gp84.
The Chief Executive Officer, Mr John Attafuah, explained to the Daily Graphic that the percentage drops were because “we did not put anything for the under recoveries”.
Ghana was also not spared the ordeal of rising crude oil prices on the international market and the intervention of the government caused a debt of $168 billion owed to the crude oil importing companies, including the Tema Oil Refinery (TOR).
Asked why the NPA did not wait until the usual two weeks interval, he replied, “we did it unawares so that the Oil Marketing Companies (OMCs) will not refuse to load from the refinery when the prices are down”.
It has been the case that anytime the prices are reduced, the OMCs refuse to lift and that, on many occasions, result in some abnormal shortages of fuel on the market.
Mr Attafuah said to avoid that situation, the NPA would do random announcements.
He noted, however, that the price reviews would be based on the pertaining prices of crude oil on the international market.
Mr Attafuah said the NPA was in talks with the commercial transport owners association to get them to allow the reduction in the fuel prices to reflect in their fares.
Oil prices have fluctuated between $50 and $43 per barrel this week, pausing after a fall of over 60 per cent since reaching a record $147.27 in mid-July.
Analysts predict that oil may likely trade below $50 a barrel and could test the $40 level by the end of the year.