Editorial: Gov't & the Petroleum Price INcrease

Many Ghanaians are up in arms against the government over the recent fuel price increases. The concerns, unlike over the past few years, has attracted persons and groupings devoid of partisan politics. The anger of workers is that Government failed to introduce a corresponding adjustment in salaries alongside the fuel price increase.

Even though Government has suggested that with the introduction of the National Petroleum Authority (NPA) it was leaving the fixing of petroleum prices for the Authority, the reality can not be lost on anybody.

And again, as was expected some people are already blaming the NPA for doing an act that would undermine government, forgetting that the NPA was a creation of Government and was only implementing government policy.

The Chronicle has pointed out on countless occasions that the essence of petroleum products in the running of all businesses in the country is such that Government ought to think seriously rather than the arm-chair approach to dealing with soaring prices on the international market.

Already reeling under the yoke of suffocating economic hardships, the hue and cry from members of the public is understandable.

No one can deny the fact that the world market price of oil is now in shambles, rocketing higher and higher in the face of the crisis in the Middle East.

However, as we have advised time and again, Government can accommodate the current levels of the international commodity, even at the previous ex-pump prices, if the tax component of the price build-up was given a second look.

Paradoxically, the most vocal supporter of the government, Hon. Kennedy Ohene Adjapong, NPP Member of Parliament for Assin North Constituency and one of the most implacable critics of the Committee for Joint Action, the organisers of the series of demonstrations against high petroleum prices (Wahala) that rocked the country over the has also questioned the wisdom in imposing further hardship on the people through the fuel price increase.

The Chronicle would once more advise Government to think seriously through the effects of leaving fuel pricing to market forces, even as it derives high level of taxation on it.

The Chronicle, again advises government to start finding alternative sources of energy for our country – a non-oil producing country. This is due to the fact that Ghana has no control of determining the price of oil on the world market and any escalation of oil price on the world market will continue to inflict havoc on Ghanaians, if government would not change its policy on it.

The Chronicle, once again advises Government to critically revise its position on over reliance on petroleum as a source of revenue generation as there is no doubt now that every increase in the prices of petroleum products imposes.