Energy analyst, Kojo Poku, has called on the Ghana Private Road Transport Union (GPRTU) to boycott purchasing fuel from filling stations charging exorbitant prices for their product instead of petitioning government to scrap some fuel taxes.
According to him, the country is in a “deregulated market” and it is a problem to ask government to remove taxes. Mr Poku explained that one of the key points for price deregulation is that consumers should patronise “cheaper fuel” at filling stations. As such, when their needs are not being met, the next alternative should be to reconsider where to buy their fuel.
“If they want to boycott, what GPRTU should get its members to do, is to boycott the higher charging filling stations. There are filling stations, as I speak to you, are charging something like GHC6.65p, some are charging GHC6.69p; that is a good 30 pesewas difference. Now, 30 pesewas per litre is what we are asking government to take off its taxes but there are companies who are offering you that 30 pesewas discount at their forecourt and nobody is going there”.
Mr Kojo Poku
The energy analyst iterated that the call by the Union for government to scrap some taxes on fuel product is “misplaced”. Mr Poku explained that to avert making such requests from government some CSOs are rather asking government to “cap the margins” that Oil Marketing Companies make.
Mr Poku asserted that he doesn’t see how government can scrap taxes and still be required to initiate development, since taxes are the only way “government gets revenue”. He suggested that stakeholders must rather come together and ask for “accountability” from government on funds it currently has accrued from the price stabilization levy.
High fuel prices by OMCs
Mr Poku posited that levies such as the price stabilization levy was set up to put monies in an account to help Ghanaians when times are hard. In light of this, he noted that instead of asking government to scrap taxes, what the transport union should ask is for government to use the monies accrued over the years to “help us”.
“Some OMCs of these big four oil marketing companies are making as high as 70 pesewas per litre as their margin and that’s ridiculous. Before COVID, these same companies were running with 35 and 40 pesewas. Today, they are not reducing their margins, they’re increasing their margins. So, GPRTU, if they really want to boycott something, they should boycott the big four and go to the Ghanaian owned and the local ones who are charging GHC6.6p and GHC6.65p; that is a removal of 30 pesewas”.
Mr Kojo Poku
For OMCs charging exorbitantly, Mr Poku expressed that they can actually “afford” to bring their prices down since other local dealers are selling at relatively lower prices. Commenting on local companies such as GOIL which is selling fuel at a high price, Mr Poku described the oil company as a “sell-out” and not an “indigenous company” anymore.
“GOIL should set the pace. Because of their inefficiency in running, GOIL is now doing the same as Puma, Total and shell which is ridiculous. I don’t see why GOIL is selling at GHC6.9p…”
Mr Kojo Poku
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