A former Chief Executive Officer of the National Petroleum Authority (NPA), John Attafuah has argued that the deregulation of pricing of petroleum products announced by government has technically not started yet.
Government earlier this month announced that the Bulk Oil Distribution Companies (BDCs), will from June 16 be allowed to regulate prices of fuel products to reflect the prices on the world market.
[contextly_sidebar id=”ksFbvmQgu7WvKAnkFtkVagItBHtIsuny”]The NPA on Tuesday announced a 14 pesewes increase on petroleum products.
According to Mr Attafuah, since the increment still came from the regulator NPA, it comfirms that the deregulation policy has not been adhered to yet.
“What has happened today is that prices have changed and I think that is all. Prices went up by a certain percentage and it was announced by the NPA. So, nothing has changed. I won’t call that deregulation,” he said.
He explaine that “it’s just a new price that has been introduced onto the market and different oil companies have decided that instead of applying the full price, they will absorb part of the cost to help the consumer.”
The former CEO of the NPA had warned that there is a high tendency that the new system if fully implemented, will create cartels and “we don’t have to take any chances with that.”
Meanwhile, the Minority in Parliament is threatening to drag the NPA to court for reliquishing its petroleum pricing role without Parliamentary approval.
The Minority spokesperson on Energy, K.T Hammond on the Citi Breakfast Show on Tuesday said “for now, we are worried about the constitutionality of it. It is for NPA to set the prices, it is not GOIL or the OMCs…We would have to go to court to stop this government from proceeding with this illegality. It is wrong and we will not allow it,” he said.
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By: Godwin A. Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin