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Petroleum subsidy claim is fraud

Comment: Re: Petroleum subsidy claim is fraud

Author:
Kofi Asaase Asa--- Mantukwa
Date:
2013-02-18 20:29:26
Comment to:
Petroleum subsidy claim is fraud


What I do not understand is this question:

why is it that, in 'Less Developed' or 'developing countries' like ours, Ghana, any increment in prices starts from percentages not less than 20?

Whilst I do have any problem with price increases,I have very huge problems with 'Fuel Price Increases', and at times, I think it is either the government is overbold or the economic advisers are so inept and cheap that they do not apply their 'basic or elementary' knowledge of Economics, Demand and Supply, in their economic decisions .

Some time ago, in one of my comments on an article on this forum on the 'Three Wisemen', appointed by President Mahamah, I used these two words: 'Effectiveness and Efficiency'.
I went further to apply the techinque of cost/benefit analysis.

Why should the government increase the price of fuel by 20%?

Did the government take into consideration,the perfectly in-elastic demand elasticity for this product and its ripple effect on the economy when its price is increased or decreased?

Why did the government not increase the price of this produce gradually or incrementally over a given period of time? For example, 5% over a period of every six months, at least.

What the government should know is that, fuel is a resource, and rent is a price, the price of land.

Why should the government hike up the rent allowances of parliamentarians and pass over the cost to ordinary man in the street in the form of increase in fuel prices?

Really my conclusions are that,

Either this government is over-bold and ignorant or is made up of cheap, inept and in-experienced economic advisers, whose main goal is 'window dressing' or stealing from 'Peter to pay Paul'.

Ghana is in a big mess. Ghana is in crisis!

This article is closed for comments.

02-18 20:29
 
 
 
Re: Petroleum subsidy claim is fraud
Kofi Asaase Asa--- Mantukwa
02-18 20:29