Energy consultant, John Peter Amewu is insisting the deregulation of pricing of petroleum products announced by government is a façade.
The National Petroleum Authority (NPA) announced in May that the Bulk Oil Distribution Companies (BDCs) will be given the mandate to regulate prices of petroleum products to reflect the prices on the world market.
[contextly_sidebar id=”IJSGEcrTBWxnVshxu1kuZ3wIqEBQdaSJ”]The BDCs on Tuesday began determining their own prices and some petroleum products have since seen a 14 pesewa increment.
The former Volta River Authority (VRA), Dr. Charles Wereko-Brobby and former Deputy Energy Minister, KT Hammond have questioned the legality of the NPA’s actions since the matter has not been sent to Parliament for approval.
The Chief Executive Officer of the NPA has defended his institution’s decision, adding that his outfit will exercise oversight responsibility on the new pricing regime to protect the consumer from unfair pricing.
However, KT Hammond has given indications that the Minority in Parliament will sue the NPA over the issue.
Speaking to Citi News, Peter Amewu maintained that it is the same automatic adjustment formula which is being implemented since the government does not want to be held responsible for any increment.
“It is the same automatic adjustment formula that they are witnessing. It is the same thing just that government doesn’t want to be held responsible that is what is happening. They just do not want to be held responsible,” he remarked.
According to him, a proper deregulated market is a market where the regulator’s hand is totally out of pricing, adding that a deregulated market has its market forces determining the pricing mechanism of petroleum.
Peter Amewu pointed out that presently, Ghana still has a regulator “undertaking some regulatory activity within the framework that we have and so we can’t say that this is deregulation – not at all!”
‘The processes that deregulation goes through are properly outlined so at it stands now, there is no deregulation,” he added.
By: Efua Idan Osam/citifmonline.com/Ghana
Follow @ osamidan