CPP criticises fuel price increase

Accra, May 3, GNA - The Convention People's Party (CPP) on Wednesday said the new petroleum price increase was unnecessary since it could have been absorbed within the nearly 40 per cent tax component in the price of the product.

"Arguments on shortfall in government revenue in this direction are untenable since other alternative measures to maximise tax collection will offset this," the CPP said in a statement signed by its General Secretary, Prof. Nii Noi Dowuona.

The CPP said it was obvious that the policy on fixing prices based on the cost of crude oil in world market would lead to an ever-increasing ex-pump price since an end to the soaring crude price was never in sight.

"Indeed, the geopolitical dimension of the all-time high crude prices is a matter that calls for a concerted and aggressive energy policy that will reduce our dependence on fossil fuel."

The CPP said nearly 80 per cent of haulage of goods and services was by road for which the use of petroleum products was pivotal. "In this regard, any increase in the price of the commodity will have a ripple effect in all sectors of the economy with the attendant worsening in the living conditions of a vast majority of our people." The CPP said a more vigorous and pragmatic energy and transportation policy that reduced the dependence on petroleum products must be pursued to sustain the modest gains in the microeconomic environment.

"The CPP opts for an aggressive exploration of cheaper sustainable sources of energy including bio-diesel, solar and wind to complement the use of fossil fuel. Use of energy efficient mass transportation, including public rail system is the surest way of reducing the debilitating effects of high prices of petroleum." Oil Marketing Companies (OMCs) on Wednesday announced increases in the prices of fuel as the world market price of crude oil climbed to an all-time high and the government completes the deregulation of the petroleum sector.

An OMC source told the Ghana News Agency that the ex-pump price of petrol was now 8,492 cedis per litre from 7,744 cedis while diesel would now sell at 7,689 cedis per litre from 7,111 cedis.