Mixed reaction over fuel price

There has been mixed reaction to the new petroleum prices released by the Oil Marketing Companies in Kumasi on Wednesday. The new petroleum prices have pushed the cost of a gallon of premium petrol from the previous level of ?34,850 to between ?38,000 and ?38,500 in the metropolis.

Public reaction on this development has ranged from outrage to moderate criticism. Many motorists The Statesman spoke to were of the opinion that the increment in petroleum prices was unnecessary and would impact negatively on their operations since any transport fares that would be announced will not be commensurate with the fuel price make.

Kwadwo Frimpong, a taxi driver who operates at the Dr Mensah Taxi Rank at Manhyia faulted the government for allowing the National Petroleum Authority and the Oil Marketing Companies to inflict hardship on the ordinary Ghanaian with their arbitrary increase in fuel prices. ?It has become almost a monthly ritual,? he lamented.

According to him, whilst the upward adjustment of the fuel price takes immediate effect, new fares are always delayed since it appears that the transport unions are not consulted or even informed when it comes to taking such a crucial decision such as increasing the price of petroleum products. Frimpong said which situations have compelled drivers to charge arbitrary transport fares leading to confrontation between drivers and the traveling public.

A trader at the Kumasi Central Market, Grace Boateng, expressed similar sentiments, adding that the government?s intention at implementing the deregulation exercise in the petroleum sector may be good but current developments on the world oil market call for another approach to petroleum pricing.

?Government should begin to explore ways of tackling issues otherwise the government would be in a quandary when oil prices which are currently hovering around $74 a barrel experience a steady rise,? she said.

A filling station manager, Yusif Alhassan, was however of the opinion that Government?s hands are tied since it has very little control over the rising cost of petroleum prices and said one can only hope that oil prices would fall on the world market to give some respite to the country.

Citing events of the past which saw the Tema Oil Refinery being saddled with huge debts, Alhassan was of the opinion that, the present formula used in determining the price of petroleum products be maintained.

Meanwhile, commercial vehicle drivers in Kumasi have maintained the old fares and the usual haggle between the drivers and passengers is absent, at least for now.

In Accra, transport fares have been increased by between ?500 and ?600. Reports monitored by The Statesman indicate that similar changes have taken place in most commercial towns and cities across the country.