• Sun. Aug 7th, 2022

Cushion Ghanaians against fuel price hikes now – Kwabena Donkor to gov’t

Dr. Kwabena Donkor, the Member of Parliament for Pru East, has accused the Minister of Finance of dragging his feet in adopting plans to protect Ghanaians from rising fuel prices.

There is no rationale, according to Dr. Donkor, for the government’s failure to safeguard consumers from rising fuel prices.

“I am aware that the Ministry of Finance has received advice, and the Ministry is hesitant to carry out the government’s instruction, which is completely unacceptable.” Although externalities cannot be dismissed, the Ghanaian people are suffering from high costs. However, there is a sector of the economy that is under our control, therefore we cannot rely on externalities to justify current pricing.”

On Wednesday, March 16, 2022, fuel prices surpassed the GHS 10 per litre level. Dr. Donkor believes that there is still more that can be done to help the suffering people.

He joined his voice to the appeal for the removal of some gasoline taxes from the price increase.

“The Ghanaian government has the ability to control taxes and levies. This isn’t the first time that global patterns have caused an increase in fuel costs. When it exceeds a particular threshold, the Ghanaian government cuts the amount of taxes levied on the commodity, providing some relief to customers.

“We have called on the government countless times [but to no avail],” he claimed. We produce oil and profit from the upstream, so taxes such as the special petroleum tax” can be eliminated, while those that can be cut are significantly reduced.”

He suggested that the entire pricing structure be re-examined in order to decrease the burden on customers.

He believes the National Petroleum Authority (NPA) should launch a conservation campaign to educate people on how to use petroleum products more efficiently.

“We also need to take a fresh look at the entire pricing system.” Is there any inefficiency in the pricing system? Can we increase price and sectoral efficiency so that the benefits of these efficiencies can be passed on to consumers, especially in these trying times? As the regulator, the NPA should launch a conservation campaign. The people should be taught on how to manage the use of petroleum products in these times.”

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