The National Petroleum Authority (NPA) has explained that the recent 9% increment on petroleum products has been triggered by price increase of the commodities in the world market.
Prices of petrol, diesel, LPG and kerosene have been increased by 9% effective May 17, 2015.
The price of premix for fishermen and RFO, however, remain unchanged.
According to a statement signed by the Chief Executive of NPA, Moses Asaga between February 2015 till date, there has been a 37% change in the price of Petrol, 26% in diesel and 43% in LPG hence the increases in the country.
He said this has led “to an increasing rate of unpaid under recoveries or subsidies, amounting to about GH¢146 million, which is causing serious liquidity challenges for the Bulk Oil Distribution Companies (BDCs).”
Moses Asaga indicated that this if not checked can lead to fuel shortages at the pumps and its attendant effects on productivity.
“The NPA, conscious of these factors and the threat from the commercial banks not to extend credit to the BDCs because of the debts, decided to make an adjustment in the prices with a view to reducing the rate of subsidy on the products,” he added.
He further assured that the NPA is working with relevant agencies and partners to fully deregulate the oil marketing business and ensure that there is cost recovery on petroleum products.
“When fully deregulated, Oil Marketing Companies will fix their own prices and compete for consumers based on their prices.”
Meanwhile, despite the increment, transport operators have been directed by the Ghana Road Transport Union (GPRTU) not to increase fares pending the midyear review of transport fares which is scheduled for June, 2015.