Fuel Prices Go Up!

The National Petroleum Authority (NPA) on Monday adjusted petroleum prices with effect from Tuesday January 4, citing the rise of crude oil on the world market. Gas oil and gasoline were increased by 30 per cent in the ex-pump price while Liquified Petroleum Gas rose by 25 per cent. Mr Alex Mould, Acting Chief Executive Officer of NPA who made this known in an encounter with the media in Accra listed the new prices as follows: Petrol, GHp152.07 from GHp116.98 per litre; Diesel, GHp153.46 from GHp118.05 per litre and LPG, GHp104.76 from GHp83.81 per kilogramme. He said the prices of Kerosene and Premix fuel, however remained the same. “These changes to the ex-pump price are inevitable due to the constant rise to crude oil on the world market,” he explained. Mr Mould said from a modest $75 per barrel price that the country enjoyed 14 months ago, prices of crude had soared to $92 per barrel mark in December, 2010. “The obvious spread which is about 23 per cent has necessitated a rise to the ex-pump price. “There are some other contributing factors to why ex-prices are going up in the regions of between 25 per cent and 30 per cent. “One of these factors is the TOR (Tema Oil Refinery) debt recovery levy which Parliament approved before Christmas. The objective will be to retire debts owed by the country's only refinery. “The levies have gone up from 2-8 pesewas per litre for petrol and 2.5 pesewas per litre on Diesel. Secondly, Distribution margins have also gone up by 4 per cent with BOST (Bulk Oil Storage and Transport Company Limited) margins are also up from GHp 2.25 per litre to GHp3 per litre and Primary Distribution Margins are also up by 2.5 per litre from 1.0 per litre.” Mr Mould said marketers and dealers in the petroleum industry had moved their margins up, explaining that after studying their numerous proposals the NPA approved their upward adjustment to GHp10.48 per litre from GHp8.28 per litre. “The increase in the margins for the dealers and marketers is expected to meet their rising cost operations, improve service delivery and efficiency,” he said. Mr Mould said the authority would continue to ensure stiffer regulations in the industry to ensure equal benefits to the consumer who was at the receiving end of these increases.