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Opinions of Saturday, 27 January 2007

Columnist: Amankwah, Nana Kofi

Kufour, This is Common People’s Bread and Butter

John Agyekum Kufour and his administration should immediately reduce the fuel prices in Ghana as the world crude oil prices continue to decline in financial markets. The crude oil February delivery has been reduced to 3.4 percent; This has brought the current spot rate at $50.48 per barrel.

In fact, for the first time since May 2005 the forward future is at $50.00 a barrel level. Since July of last year, when the crude oil prices reached it’s peak at above $77.00, oil prices have dramatically droped by one third. As a result of this, Kufuor should ditch domestic programs, such as energy with his National petroleum authority (NPA) and reduce the fuel prices in the nation. Kufour has given directives to his ministers, DCEs, MCEs and his other government appointees not to forget about where their bread and butter come from The high fuel prices in the country are not good for the common people’s bread and butter but for those ministers and government appointees who enjoy free fuel . They has forgetting those who put them in office. The fuel price has continued to decline for the past five weeks, yet our government officials have not reduced the fuel prices so that the common people will also enjoy the fruits of their labor as their bread and butter. Economic of scales is the gaining way of reducing energy cost and lower taxes, improving efficiency, and create job opportunities domestically. I urge Kufour to use these common-sense principles to reduce the fuel prices as an incentive at all times

I could not care less if Kufuor is the one who runs the national petroleum authority (NPA) or currently it is being run by private entities. This is the common people’s bread and butter, as Kufour wants his NPP members to enjoy from the fruit of their party being in power. If the fuel price has been reduced in Ghana consumers will spend more and entrepreneurs will have some opportunities to create jobs or to assist Ghanaians.

I urge John Attafuah and his national petroleum authorities to realize that the consequence of unemployment in the country has very serious issues; they shouldn’t pat fuel prices with politics. The fuel prices in Ghana should be transparent with regard to the crude oil spot rates. The national petroleum authorities (NPA) cannot tell Ghanaians that they determine their fuel prices to consumers on the cost of refining and importing the crude oil. If this is the case, then what is the sense of the huge taxes they are paying on these fuels? The inputs of government expenditure are well known to Ghanaians; the outputs profit margins are not known to Ghanaians only (NPA). Based on this current spot crude oil prices the fuel price in Ghana must be sold at 20.400 cedis. Undoubtly if Kufuor can quantify his decision on reducing the fuel prices this could jump start the economy for businessmen and women and provide more jobs for our youth.

From Nana Kofi Amankwah (New York)

Views expressed by the author(s) do not necessarily reflect those of GhanaHomePage.