TUC urges government to plan increases in petrol prices well

The Ghana Trades Union Congress (TUC) on Thursday urged the government to be cautious about the proposed increase in fuel prices pointing out that a drastic increase could be devastating.

In a statement on the President's sessional address to Parliament the TUC admitted that the 2.3 trillion cedis debt incurred on petroleum products and the daily six billion cedis debt as a result of subsidy on the product could be devastating.

However, it said, in order to avoid any serious negative socio-economic and political consequences, the increase should be spread over a period.

The statement signed by Mr Kwasi Adu-Amankwah, Secretary-general said: "Furthermore, we urge government to adjust wages and salaries concurrently in order to cushion workers from the effects of the expected inflation that will result from the planned adjustment of petroleum prices."

The TUC asked the President to make a definite financial commitment in the budget to the development of urban mass transport as contained in his address.

This is to ensure that "the already impoverished workers of Ghana who have borne the brunt of the negative impact of structural adjustment policies all these years will not be overburdened with the high prices of fuel".

The TUC expressed regret that the President failed to address the issue of low wages and incomes, especially when so much time and effort was devoted to the need for increases in petroleum prices. "We are of the view that in a situation where inflation is currently over 40 per cent and higher inflation is expected, the President could have elaborated a bit on how Government is to address this chronic problem in the short to medium term."

The TUC commended the President for the reaffirmation of his government's commitment to the rule of law and to the strengthening of the Executive, Judiciary and Parliament, fairness in its dealings with the citizenry and the distribution of economic opportunities.

The release urged Government to show its commitment to good governance by duly involving all stakeholders in the formulation and implementation of its social and economic policies.

The TUC said it hopes the budget would be a worker-friendly and human-centred one that would begin to address the incidence of poverty.

The statement said it acknowledged the government's concern with regard to the criminal libel law, introduction of a Code of Conduct for members of the executive, support for skill and entrepreneurship development, promotion of modern technology, the private sector and importance of agriculture.