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Gov’t cannot be blamed for increase in fuel prices – Economist

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Some drivers’ unions in the country have been calling on the Government to reduce fuel prices or face the possible increment in transport fares.

These actions were stemmed from the report that consumers of petroleum products should be prepared to pay more for fuel at the pumps following an increment in the BOST margin by the National Petroleum Authority (NPA) from 3 pesewas to 6 pesewas.

Lecturer at the University of Ghana’s Economics Department, Dr. Adu Owusu Sarkodie has said that the recent call to the Government to reduce fuel prices may be an illegitimate one.

In an interview with Samuel Eshun on the Happy Morning Show, he explained that the increase or decrease in fuel prices is based on a deregulation system and not on Government’s actions.

“We have a deregulation regime, so I do not agree to the fact that people are calling on Government to reduce fuel prices. The price windows opens every two weeks and it is not determined by Government, it is determined by the demand and supply”, he said.

He noted that the Government can only be involved when it comes to reducing levies or taxes that could possibly increase the price of fuels.

He revealed also that commercial drivers enjoyed a decrease in fuel prices during the lockdown and as such it is possible that authorities will refer them to that period if they officially raised these concerns.

On 4th June, 2020, the Public Relations Officer of the True Drivers Union, Yaw Berima,in an interview with Samuel Eshun on the Happy Morning Show, threatened that commercial drivers will soon increase fares by 20% if the Government does not take any action against the increment in fuel prices.

By: Alberta Dorcas N D Armah

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