AFAG stands by ultimatum to demonstrate

IF FUEL PRICES ARE NOT REDUCED

Pressure group Alliance for Accountable Governance (AFAG) says it still is counting down to its 10-day ultimatum to the Mills-led administration to reduce the just increased petroleum prices despite President John Mills¹ efforts to justify the increases.

On Wednesday, January 5 2011, the group issued a 10-day ultimatum to the government to reduce petroleum prices or face its wrath.

Spokesperson for the group, Samuel Awuku had said then that AFAG is going to respond to the price hike disproportionately if nothing is done to ameliorate the effects on the ordinary Ghanaian.

Government has come under scathing attacks from pressure groups and businesses associations following a 25 to 30 per cent hike in fuel prices.

Government spokespersons and officials of the National Petroleum Authority have been quick to defend the hike, citing increases in crude oil prices on the international market and a strangling Tema Oil Refinery debt, which needs to be retired.

But AFAG insists the reasons are untenable. It said if the government continues to be insensitive by holding on to the increases AFAG will have no choice than to embark on nationwide demonstrations, not the one-off demonstration they had organised in the past.

President John Mills in an interaction with editors and media owners at the Osu Castle last Friday, cited the same old reasons and asked the New Patriotic Party to apologize to the people of Ghana for leaving the economy in what he describes as a ³hard and parlous state.²

Answering questions about accusations particularly from the opposition NPP, that he has reneged on his promise to reduce fuel prices, President Mills explained that his promise to reduce fuel prices prior to the 2008 elections were premised on prevailing conditions at the time.

President Mills said that at the beginning of 2009 when he assumed office, he met a crippling Tema Oil Refinery (TOR) debt of GHS1.488 billion. He explained that even when prices of world crude kept rising, the government refused to increase prices while spending huge sums of money to subsidize the product.

The President said the recent price hikes were necessitated by calls from people who needed better livelihoods and social amenities to make their lives a lot easier. He added that there is no money in government coffers because they were paying the TOR debt and subsidizing the fuel prices. Government could therefore not carry out developmental projects.

However, AFAG says it is unfazed by the President¹s explanation.

Speaking in an interview with Emefa Apawu, host of the Big Bite on Xfm 95.1, a privately owned commercial radio in Accra, the group¹s General Secretary, Arnold Boateng says the group will still embark on their planned demonstration despite the president¹s explanations, which he says are not justifiable enough.

He says the increases will lead to a crippling of the nation¹s growing economy, adding that the concerns raised by the Association of Ghana Industries should have been considered by the government and the prices subsequently reviewed downwards.

³These are legitimate issues (AGI¹s concerns) that any government willing to ensure economic growth will take up seriously, but unfortunately, the president came to crack jokes, simplify the issue and make it look like he had no option but to increase the price.²

Arnold Boateng says ³AFAG still stands by its decision that based on the impact on consumers; there is the need for the government to withdraw the levy and make sure that it puts in place business friendly policies to alleviate the poverty hassle on Ghanaians to stem growth in the private sector².

Story by Abena Asiedua Tenkorang/Xfm 95.1/Accra/Ghana