Ghanaians to suffer for 15 pesewas reduction in fuel prices – Mahama

Managing Editor of the Custodian Newspaper, Awudu Mahama, says he is against government’s decision to reduce fuel prices by 15 pesewas per litre.

He explained the reduction will not have any major impact on money saved at the pump by the consumer, “rather at the end of the year government will lose over 4 billion cedis because of this reduction and the ordinary Ghanaian will end up suffering for that.” 

According to him, the 4 billion cedis which would be lost by government could be used for the construction of roads, health infrastructure, educational facilities and other developmental infrastructure.

In a discussion on the Editors’ Take edition of the Happy Morning Show, Awudu Mahama stated, “The money we are going to lose could be used for many things. If gov’t thinks it cannot reduce the prices of fuel to the level that people will feel, then it is better we don’t reduce it at all. Because once we do it gov’t will bleed heavily when it comes to income generation.”

explaining the formula to calculate for the revenue government will lose with this reduction, he said, “Some may say the reduction is nothing, just 15 pesewas on a litre of fuel. Just calculate the quantity of fuel we consume in Ghana daily or multiple the daily quantity consumed by 30 days. After, calculate by the number of months this reduction will last and that is how you will realize we are going to lose billions of cedis and the effects will not be good for Ghana.”

To him, government is going to lose money which it could have used to cushion the economy through this move.

Fuel prices in Ghana will go down by 15 pesewas per litreeffective April 1, 2022. This reduction will be in place for three months.

Minister of Finance, Ken Ofori-Atta disclosed on Thursday, March 24, 2022, fuel prices in Ghana will go down by 15 pesewas per litre effective April 1, 2022, lasting 3 months.
This is part of measures put in place by the government to cushion Ghanaians against current economic shocks.

“To mitigate the rising price of petroleum products at the pumps, for the next three months, the government has decided to reduce margins in the petroleum price build-up by a total of 15 pesewas per litre with effect from 1st of April,” he said.

“BOST margin reduced by 2 pesewas per litre, unified petroleum pricing fund margin reduced by 9 pesewas per litre, fuel markin margin reduced by 1 pesewa per litre, primary distribution margin reduced by 3 pesewas per litre. These are expected to reduce the price of petrol by 1.6 percent and diesel by 1.4 percent. We anticipate the measures taken to stabilise the currency will help further stabilise the prices at the pumps,” Mr. Ofori-Atta added.

He said, in addition to the aforementioned measures, the National Petroleum Authority and the Ministry of Energy are in talks with the various Oil Marketing Companies (OMCS) “to reduce their margins in the spirit of burden-sharing”.

Prices of petroleum products have skyrocketed within the last few days.

Diesel is currently selling between GH¢10 and GH¢11 per litre, while the price of petrol has crossed the GH¢9 mark at some fuel stations.