OMCs promise fuel price reductions

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The Association of Oil Marketing Companies (AOMCs) has hinted that fuel prices would continue to increase in the country because the factors that affect petroleum products have not changed.

The Association said the trend around this time in the year continues to increase globally and domestically because factors such as the high dollar rate keep increasing.

The National Petroleum Authority (NPA) announced the removal of the Price Stabilization and Recovery Levies on petrol, diesel and LPG for a period of two months in a bid to stabilise the prices.

In a statement, the NPA assured of reduced prices in pursuant to President Akufo-Addo’s approval for zero Price Stabilization and Recovery Levies following the advice of the NPA to seek government’s intervention to mitigate the impact of rising prices of petroleum products on the world market on consumers.

The directive takes effect from Monday, November 1.

Reacting to the development on 3FM’s Sunrise on Monday, the Chief Executive Officer of the OMCs, Kwaku Agyeman Duah, said: “The trend around this time [means] it will continue going up.

“We are still going to have some increments because the factors that affect the increments are still there. The increasing trend will continue.”

Fuel price reduction

Mr. Agyeman Duah promised that the directives by the NPA would be adhered to because that was an order by the president even though prices remained the same as at early Monday morning.

“Prices haven’t changed as of now but it takes effect from [Mon]day. As and when we change our prices, we take into account the letter from the NPA and within a few days, we will see the change.”

He explained that “we have to change outright to reflect the direct and I am sure later in the day, you will see it happening. It will vary from one OMC to the other”.

Asked why the reductions were not done a day before November 1, Mr. Agyeman Duah explained that “once you have the old stock, you have to sell them off…now we have an old stock, why do you reduce it?”

“When we go for the new stock, you see the price will reflect. Mondays are the days we finish the old stocks so by the close of day today, you will see the reductions.”

The CEO could not tell the margin of reduction.

“I can’t say how much the price changed but it ranges from 16 pesewas on a petrol….14pesewa on diesel and 14 pesewas per kilo on LPG.”

By Kweku Antwi-Otoo|3news.com|Ghana