Business News of Sunday, 12 December 2021
Source: www.ghanaweb.live
2021-12-12CBOD proposes fuel price reduction but move depends on government
Senyo Hosi, Chief Executive Officer of the Ghana Chamber of Bulk Oil Distributors
GOIL reduces fuel prices by 15 pesewas
Commercial drivers call off a sit-down strike
CBOD calls for rationalization of taxes
The Ghana Chamber of Bulk Oil Distributors (CBOD) has proposed a reduction in fuel prices to GH¢6.00 per litre at various pumps.
Prices of petroleum products have in the past few weeks and months increased significantly
Read full articleto almost GH¢6.80 at various pumps.
Chief Executive Officer of the Chamber, Senyo Hosi, making his submission on the NewsFile segment on December 11 however said a reduction is however dependent on the decision made by government in the downstream petroleum sectors.
“There are a number of things that don’t need to be there. The BOST margin for instance. [Also] our transportation margins are overpriced. We can easily get our price back to below 6 cedis or just at 6 cedis if we want. But these are decisions government needs to take.” he said.
He further called for rationalisation of taxes imposed and said prices of petroleum products can be reduced if government makes the consideration to direct the Bank of Ghana to dedicate its Foreign Exchange (FX) supply to the oil sector.
“Those pricing petrol today will be doing that with a Foreign Exchange (FX) rate of about 6.6 or 6.5 but the Bank of Ghana releases FX to the country from time to time at a rate of about 5.9 thereabouts.
"If government takes a policy that oil has a cascading impact on all products and the general economic life so it is directing the Bank of Ghana to dedicate its FX supply to the oil sector, we’ll be able to reduce petroleum prices from 6.7 to about 6.2. We also need to relook our taxes and see how we optimise it,” Senyo Hosi explained.
Meanwhile, commercial drivers in the country embarked on a sit-down strike on December 6, 2021 in protest over increasing fuel prices but the strike action has since been called off.
Prior to the strike, the drivers bemoaned the GH¢1.50 worth of tax on every litre of petrol or diesel was rather expensive hence a reduction is required.
