‘Gov’t must reconsider current fuel review system’

The current fuel review system used by government is creating a lot of inconvenience to consumers, an energy expert has said. It also does not allow government to do proper planning, he added.

Dr John Peter-Amewu, Energy Policy Analyst at the Africa Center for Energy Policy (ACEP), in an interview with TV3’s Kweku Temeng on Friday, November 1, 2013, suggested that government and the National Petroleum Authority (NPA) for that matter must adopt a long term Marginal Cost System in reviewing fuel prices.

With the suggested system, Dr Peter-Amewu explained that a border price is arrived at “and we build in the necessary levy and tax price margin for a period of one year.”

He further explained that the border price allows for adjustments in the global market. “It gives the consumer a better planning for its disposal income,” Dr Peter-Amewu said of the Marginal Cost System.

“It puts the government in a position that enables it to focus its budget in terms of expenditure,” he added.

New petroleum prices were announced for November on Thursday, October 31 and the NPA has hinted there will be another review on November 16.