The regulatory body has vehemently refused to go by its Automatic Adjustment Formula which requires the NPA to periodically review prices of fuel. The NPA said they are not contesting the call to reduce prices at the pumps, but have resolved to maintain the current prices – despite the massive reduction – for the Bulk Distribution Companies to defray their debt.
Crude oil hit a fresh five-year low on Tuesday, extending a six-month selloff as slowing Chinese factory activity and weakening emerging-market currencies added to concerns about demand. U.S. crude fell to $54.09 a barrel after trading at a session low of $53.72, the weakest level since May 4, 2009, when it reached $52.56.
Following this development, Attafuah has argued the NPA is not being fair to Ghanaians looking at how low the prices have fallen, arguing petrol should be selling at Gh¢8.52 per gallon as against Gh¢15.
“There is absolutely no reason why the authority should not reduce prices at the pumps,” he told Accra-based Citi FM.
According to him, using the prices of petroleum products on the NPA’s website between June and December 1, this year, particularly the world market price for crude as a proxy and multiplying that by the exchange rate, the price of the commodity should have gone down by about 31 percent as at last week.
Attafuah told the Daily Guide in a separate interview that using the current exchange rate of GH¢3.22, it translates into 44 percent in cedi terms and 50 percent in dollar terms from June 2014 to date. Thus, a gallon of petrol in Ghana should now be selling at GH¢8.52.
Source: Ghana/StarrFMonline.com/103.5FM
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