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General News of Tuesday, 21 July 2009

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Remove The Illegal Additions On Fuel Prices -NPP

In June 2009 when new fuel prices were announced by the Mills administration, the NPP called on government to explain how they arrived at the up-to-30% fuel price increases. Government’s response was that the calculation of the increases had been above board and that there was nothing to worry about.

A week before the Mills government gave this innocent-sounding assurance to Ghanaians, the Chief Executive of NPA, Mr Alex Mould, had written a secret letter dated 5th June 2009, referenced DF/181/249/01 to TOR asking for various additions to be put on top of the ex-refinery prices and to pay those additions (which have been cleverly labelled as “ex-refinery differentials”) into some special bank accounts. Clearly written on that letter is the word, “CONFIDENTIAL”.

The following are the additions for petrol, kerosene and diesel, the three most consumed petroleum products, as instructed in the letter:

Product Calculated price (per gallon) Secret addition (per gallon) Govt price (Currently being charged)

Petrol GH?4.80 (?48,000) 30GHp (?3000) GH?5.10 (?51,000)

Kerosene GH?3.57 (?35,700) 43GHp (?4300) GH?4.00 (?40,000)

Diesel GH?4.15 (?41,500) 95GHp (?9500) GH?5.10 (?51,000)

Several questions have to be asked:

1. Why inflict illegal price additions (so clandestinely) on Ghanaians at a time when the prices of basic items on the market are already rising so sharply?

2. Why should a government engage in such dishonest conduct?

3. Who are the beneficiaries of the illegal funds being collected?

It is just proper that government reverts back to the true fuel prices without delay.

In the face of rising prices of all basic items on the market, government seems to lack ideas in dealing with the challenge. We do not see any clear strategies by government to handle the growing cost of living. Yet, the same NDC administration and its officers appear to be very creative and skilful in the use of irregular methods to serve their own illegitimate interests at the expense of the welfare of ordinary Ghanaians.

We request Parliament to institute an investigation into the circumstances leading to this irregular and illegal government conduct.

Kwaku Kwarteng Communications Director