The NPA, in a statement, said it was of the “considered view that the reasons for the intended demonstration are anything but noble” given the interventions it has been making.

[contextly_sidebar id=”Ruu8p6jCI8dNXJeGsJXLpqW38JLSRZUc”]These interventions have seen prices rise by just between 0.66 percent and 1.08 percent, according to the statement.

The NPA advised stakeholders to seek clarity from them to “ensure that the public is not misled by those who are motivated by reasons other than those of national interest.”

The Chamber of Petroleum Consumers (COPEC) and Industrial and Commercial Workers Union (ICU) are spearheading the protest against the price increase of petroleum products.

Use of Stabilization and Recovery Levy

Providing some background to the situation, the Authority explained that the prices of petroleum products have risen by about 18 percent on the international market since November 2017.

“Under the current price deregulation regime which has been in effect since July 2015, price volatility on the international market is expected to directly impact domestic pump prices because the government has no direct control over the setting of the bi-weekly prices of petroleum products,” it noted.

But the NPA says it “has since December 2017 used upfront, the expected receipts from the Price Stabilization and Recovery Levy (PSRL) in the price build-up as a mechanism to bring stability to prices.”

At the end of 2017, the NPA announced that prices of petrol and Liquefied Petroleum Gas (LPG) would remain fairly stable at the pumps from January 1 because of the activation of the Price Stabilization and Recovery Levy.

Before this, the NPA had directed all Oil Marketing Companies and LPG Marketing Companies to use revised prices in the Price Stabilization and Recovery Levy Act to control recent price increases in petroleum products.

The levy was, however, unable to prevent the fuel price increases, which COPEC had sounded warnings of in January.

Price increase could have been higher

This notwithstanding, the NPA has said its interventions prevented the fuel prices from rising much higher than what is seen at the pumps.

“This intervention by the government has brought down the expected increase of petrol’s price for the period 1st – 15th February 2018 from 5.06% to 2.16% and from 3.60% to 1.26% for diesel. Despite the expected increases above after the intervention, the actual price changes observed on the market at the moment range between 0.66% and 1.08%,” the NPA explained.

It added that, a “large majority of Oil Marketing Companies (OMCs) still have their prices unchanged whilst some have even reduced their prices, and consumers are at liberty to purchase petroleum products from OMCs with competitive prices as expected under a price deregulated regime.”

Find below the full statement

6th February 2018

INCREASES IN EX-PUMP PRICES OF PETROLEUM PRODUCTS

The National Petroleum Authority (NPA) has received notice of an intended demonstration by the Chamber of Petroleum Consumers (COPEC) and Industrial and Commercial Workers Union (ICU) ostensibly in response to recent increases in price of petroleum products at the pump by some selected Oil Marketing Companies.

We do recognise that the right to demonstrate for or against any course is a constitutionally guaranteed one and COPEC will be acting within its right as such.

We are however of the considered view that the reasons for the intended demonstration are anything but noble having regard to the interventions made time and again by the NPA by way of the Price Stabilisation interventions over the past three (3) months. The truth of the matter are as follows:

1. Prices of petroleum products have been on the rise on the international market. For instance the prices of petrol and diesel on the international market have increased cumulatively by 17% and 19% respectively since November 2017;
2. Under the current price deregulation regime which has been in effect since July 2015, price volatility on the international market is expected to directly impact domestic pump prices because government has no direct control over the setting of the bi-weekly prices of petroleum products;
3. However, being concerned about the impact of the upward trend of international market prices on domestic product prices, government has since December 2017 used upfront, the expected receipts from the Price Stabilisation and Recovery Levy (PSRL) in the price build-up as a mechanism to bring stability to prices;
4. Since 1st February, 2018, for instance, the PSRL which hitherto were GHp12/Lt on petrol and GHp10/Lt on diesel have been completely neutralized to reduce the impact of rising prices on the international market on Ghanaian consumers. This means that government has forfeited the revenue it would have collected on these products for the period 1st – 15th February, 2018 in order to cushion consumers;
5. This intervention by the government has brought down the expected increase of petrol’s price for the period 1st – 15th February, 2018 from 5.06% to 2.16% and from 3.60% to 1.26% for diesel;
6. Despite the expected increases above after the intervention, the actual price changes observed on the market at the moment range between 0.66% and 1.08%;
7. It is worthy to note that the large majority of Oil Marketing Companies (OMCs) still have their prices unchanged whilst some have even reduced their prices, and consumers are at liberty to purchase petroleum products from OMCs with competitive prices as expected under a price deregulated regime; and
8. The consuming public is hereby assured that the National Petroleum Authority will continue to monitor the prices of petroleum products on the market to ensure that they are set in conformity with the Prescribed Petroleum Price Formula.

We wish to advise all interested groups that need further clarity on the current state of petroleum product prices to contact the NPA for a discussion. This will ensure that the public is not misled by those who are motivated by reasons other than those of national interest.

Signed

Corporate Affairs Division

–

By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Fuel price increase just 1.08% – NPA condemns demo appeared first on Citi 97.3 FM - Relevant Radio. Always.

The demonstration, which is being organized by the Chamber of Petroleum Consumers (COPEC) in collaboration with the Industrial and Commercial Workers Union (ICU), is to force the government to reduce taxes on petroleum products.

[contextly_sidebar id=”sRhl8OiuMsOBq9jliAEebIMeuKpasfP5″]Currently, a litre of both petrol and diesel, goes for GHc4.62 at some major fuel stations.

This is despite assurances from the National Petroleum Authority (NPA) that prices will remain fairly stable at the pumps.

Speaking to Citi News earlier, the Executive Director of COPEC, Duncan Amoah, called on the government to review prices of petroleum products.

“We are paying close to $5 in order to be able to get petrol to your tank. That clearly is not helping anything. We understand very well that some of the taxes were introduced as windfall taxes at the time that world market prices had dropped so low and Ghana needed a little more revenue in order to be able to cushion the world market prices that have gone down.”

“Today, the same dynamics are not at play. Unfortunately, the taxes that were introduced which should have gone by now, are still all in place. Ghana selling petrol above 20 cedis and it is still going up, it cannot be sustained. We need an immediate review of the price build up. We need some reduction. We need some stability in order to plan our spending on petroleum products in the country.”

IES predicts 2% price increase

The Institute of Energy Security (IES), had earlier predicted that prices of fuel may go up by 2 percent in the first pricing window in February, between February 2, 2018, and February 15, 2018.

The IES further attributed the development to the constant rise in crude oil prices which is currently selling at 69 dollars per barrel on the international market, among other factors.

–

By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post COPEC, ICU to demonstrate today over fuel price hikes appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to the Chief Executive Officer of the National Petroleum Authority (NPA), Hassan Tampuli, the price surge could largely be attributed to the recent hurricanes that ravaged the United States of America.

“For the past many years, at this time of the year, prices will normally come down after the summer driving season. In the summer driving season, where there is no winter, people go out of their houses, they go on vacation, crisscrossing their country and then the demand on products increases…it is different this time because of the unfortunate national disaster that we have in the United States, especially, which has led to the diversion of [fuel] products from Europe meant for south, west and central African countries to the Americans,” Mr. Tampuli said on Wednesday at a press conference.

Fuel prices hit all-year-high

[contextly_sidebar id=”poGDKqqKi4t0uMj1m9QGAHEnH0oPmPJQ”]Fuel prices have hit all-year-high in September, with petrol selling at an average price of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre.

Analysts have posited that the surge in fuel prices could be among other things be as a result of crude oil price on the international market, as well as the depreciation of the Ghanaian currency – the cedi.

Reduce taxes on fuel prices

Some have also complained that the numerous taxes on petroleum products, could have led to a surge in prices, and have thus called on government to review them.

But Mr. Tampuli defended the taxes saying they help to stabilize the prices within the country. He also said government does not benefit from the taxes saying they are in the interest of consumers.

Hurricane Harvey, Irma and all in-between

Climate change in recent times led to some massive hurricanes – Harvey, Irma, others —hitting some states in the US.

The storms, which were so violent, were said to have destroyed properties worth millions of dollars. Some US states were cut off from social amenities including electricity due to the storms.

–

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post US hurricanes caused fuel price hikes in Ghana – NPA appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the government’s decision to “clandestinely” increase the price of fuel is “unfortunate”.

Speaking on Eyewitness News, John Jinapor said the fuel price increase is an indication of the government’s failure to keep up with its campaign promise of removing taxes that contribute to the fuel price build up.

[contextly_sidebar id=”WZy4kDVQunplMw9fBRBmBQ27X92SjNlI”]“I went to the pump today [Tuesday], and realized there is an increment. NPA and government must come out clear on what is happening. This idea of clandestinely increasing fuel prices is most unfortunate. If you increase fuel prices, communicate it, so that there is no ambiguity,” John Jinapor said.

Some drivers, especially in Accra, have in the past week complained about an exponential increase in the price of fuel at various fuel stations although there has not been any official communication from the government or any agency in the petroleum sector to that effect.

Information available to citifmonline.com indicates that, the price of fuel hit an all-year record high this month [September], with Diesel being sold at  GH¢4.29 per litre, and Petrol being sold at GH¢ 4.23.

In July, diesel was sold at about GH¢ 3.77 per litre, while petrol was sold at GH¢ 3.76. John Jinapor alleged that some drivers had begun increasing transport fares, although there has not been any general talk about increases in transport fares.

“Some drivers have gone ahead to increase their transport fares by as much as 30%. I think the government must live up to its responsibility and protect the Ghanaian interest and do what is right,” he said.

The Institute of Energy Security (IES), had earlier predicted a 7% increase in fuel prices.

The increase has been attributed to the marginal depreciation of the cedi, as well as increased global crude oil prices due to the recent floods in the US which affected production at major oil companies.

–

By: Jonas Nyabor/citifmonline.com/Ghana

The post Come clean on ‘secret’ fuel price increases – Jinapor dares gov’t appeared first on Citi 97.3 FM - Relevant Radio. Always.

If the prediction by the Institute of Energy Security (IES) is anything to by, then prices will go up by at least 7 percent for the second pricing window in September.

Citi Business News’ checks indicate that, the prices of petroleum products have been increasing marginally from August till now.

This has been triggered by the marginal depreciation of the cedi, as well as increased global crude oil prices due to the recent floods in the US which affected production at major oil companies.

The Principal Research Analyst at the Institute of Energy Security, Richmond Rockson, in explaining the phenomenon, said “We are expecting prices to rise between seven and ten percent, and this will have an impact on consumers. This probably will be the most significant. The cedi also keeps depreciating. After the storm Harvey, refineries were affected so prices will definitely go up”.

Petroleum prices increase by 3 percent on the average

An analysis of the first seven months of 2017, shows that the prices of petroleum products have gone up five times out of the fourteen pricing windows in the period.

The year started with perhaps the highest percentage rise in prices of petroleum products. The prices of petrol and diesel went up by as much as 7.73% and 6.68% respectively.

This continued until March 15^th, when the prices started to drop marginally.

Although the year begun with a litre of petrol and diesel selling at 4 cedis 4 pesewas, and 3 cedis 99 pesewas respectively, as at the middle of March, the price for the same quantity each of petrol and diesel had gone up to 4 cedis 30 pesewas, and 4 cedis 25 pesewas respectively.

In all, the first four months of 2017 witnessed an average increase in prices of 3 percent.

At the time, industry watchers attributed the development to the decision by oil producing countries to hold back production in January in order to recoup some of their recent losses.

In addition was the cedi’s depreciation against the dollar coupled with drop in combined stock of Gasoline and Gasoil from about 130 to 120 thousand metric tonnes.

Declining petroleum price margins for 2017

Meanwhile, the prices of petroleum products began declining from the second pricing window in March, which spanned 16^th to 31^st March 2017.

Of the nine times that petroleum prices have been declining, the highest rate of decline in petroleum prices has been in the second pricing window in March where prices dropped by almost 4 percent .

But prices of diesel recorded the highest decline of about 3 percent in the subsequent pricing window spanning 1^st to 15^th April, 2017.

In each of these cases, the drop in the global oil prices due to a rise in U.S. shale production as well as the relative stability of the cedi accounted for the drop.

On the average, prices have dropped by 1.46 percent between January and July 2017.

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Fuel prices increase by 3% average in 2017 appeared first on Citi 97.3 FM - Relevant Radio. Always.