Fuel price reduction may not affect fares significantly – PROTOA

Transport fares are unlikely to experience any significant change even if the prices of fuel products are reviewed downwards by the National Petroleum Authority at a meeting on Tuesday, the Progressive Transport Owners Association (PROTOA) has hinted.

PROTOA has told Starr News that Ghanaians should not expect any major changes in transport fares after the NPA’s 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.

In spite of the drop in the price of the commodity on the world market, the NPA insists it cannot reduce the price of fuel products due to its indebtedness to the oil marketing companies.

Currently a gallon of petrol is selling at about GH?17 and various groups, including opposition parties have clamoured 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 overrecoveries (windfall) that has accrued a total of GH?200 million which has been paid to the BDCs”.

The public is highly expectant of a reduction in fuel prices after the NPA’s meeting today, but Chairman of PROTOA Ben Peprah Amoateng told Starr News the same expectation must not be had of transport fares.