New Fuel Price Will Not Change Transport Fares

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– PROTOA Declares As NPA Halves GH¢412 Million Debt

Transport fares, are unlikely to experience any significant change, even if the prices of fuel products are reviewed downwards by the National Petroleum Authority (NPA) soon, the Progressive Transport Owners Association (PROTOA) has hinted, and advised Ghanaians not to expect any major changes in fares after an NPA announcement.

There has been a considerable fall in the price of crude oil on the international market over the last couple of months, from $100 dollars to below $60 dollars per barrel, and Ghanaian consumers will in the coming days taste a downward review.

Barring any hitches, the NPA, is likely to reduce the prices petrol and other petroleum products for consumers not more than 6 percent, meaning transport fares are unlikely to experience any significant change with changes in prices of petroleum product. Fares are automatically reduced when there’s 10 percent reduction and vice-versa, when there’s an increment.

The public, is highly expectant of a reduction in fuel prices after the NPA met yesterday, but Chairman of PROTOA, Ben Peprah Amoateng, told Accra-based Starr FM that the same expectation must not be had of transport fares.

The NPA, insists that it cannot reduce the price of fuel products due to its indebtedness to the oil marketing companies, and currently a gallon of petrol is selling at about GH¢17 and various groups, including the opposition New Patriotic Party (NPP) are clamouring for a reduction in fuel prices on the local market.

In a statement, the NPA said, it “acknowledges the fact that fuel and crude oil prices on the world market have decreased in the last few months warranting a decrease in the ex-pump price.

“However, the NPA was unable to immediately respond to the drop in world market prices because of the huge outstanding debt (under-recoveries) owed the Bulk Oil Distribution Companies (BDCs) to the tune of GH¢412 million as July 31st, 2014, which the NPA has been paying on a fortnightly basis through the over-recoveries (windfall) that has accrued a total of GH¢200 million which has been paid to the BDCs”.

The NPA, has revealed that it has cleared about half of some GH¢412 million debt owed importers of petroleum products.
According to the NPA, this has been made possible through savings made from declining crude oil prices on the international market.

Public Relations Officer of the NPA, Yaro Kasambata, told Joy Business, discussions on a possible downward review of petroleum prices, would be made after a meeting of top NPA executives yesterday.

“I do not want to say that it is not on the table. I do not want to say it is on the table. When we go for our review meetings, all scenarios are possible”, he said.

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