Fuel dealer hails mode of fixing new fuel price

Accra, July 24, GNA - Nana Owusu Ansah II, President of the Total Fuel Dealers Association, has hailed the mode that was used to announce the current increase in petroleum products, saying it helped to prevent panic buying and hoarding.

He said the measures adopted by the National Petroleum Authority (NPA) and the Oil Marketing Companies played down the wild speculations that had always preceded such announcements and led to public anxiety. Nana Ansah, who is also the Chief Executive Officer of Total North Industrial Area Service Station in Accra, made the observation in an interview with the Ghana News Agency at the weekend.

He, however, expressed misgivings about the increment in the prices of liquefied petroleum gas (LPG) products and kerosene.

"What is the essence in increasing LPG products when the country has embarked on efforts to fight desertification associated with the cutting down of trees for fuel wood?" He asked.

Nana Ansah said kerosene was the essential source of energy for rural dwellers and the increase in the price of the product would make life unbearable for them.

He said kerosene, which was selling at 6,418 cedis per litre was now going for 7,689 cedis.

Nana Ansah suggested the need for the NPA to review downwards the taxes on petroleum products to bring some relief to Ghanaians. He said business at his station had not been brisk since the prices of petroleum products skyrocketed.

"Sales dropped by between 20 per cent and 25 per cent previously and with the recent increment it is expected to even drop further," he said.

He said before new prices were pegged this week he was buying 27,000 litres of super for 229.7 million cedis, adding: "Now I spend 252 million cedis for the same quantity."

Nana Ansah said he had to top up his working capital with additional 45.9 million cedis.