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INSTEPR ‘slams’ Oil Marketing Companies over hike in petroleum prices

A policy Think Tank, Institute for Energy Policies and Research (INSTEPR), has urged Oil Marketing Companies (OMCs) to prioritize their customers in setting their prices.

In a statement, INSTEPR said the nation has entered the last price review window before Christmas and the international fuel prices have dropped from a high of $840 per MT for petrol to $685.

“Fuel is an essential commodity and these companies are not putting their customers first but their profits. The same way we blame the Government for higher taxes resulting in expensive fuel, we should also blame these insensitive OMCs,” INSTEPR opined.

According to the Think Tank, “there are companies that are selling around GH¢6.35 to GH¢6. 50, these are quality fuel and we should all boycott the expensive insensitive OMCs and buy from the cheaper priced OMCs.”

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“Until we patronize these cheaper fuels, the deregulation will not work. All fuel sold in Ghana at every fuel station is of the same quality. Don’t let anyone tell you otherwise. This is a message the National Petroleum Authority (NPA) has repeated over and over.

“If you want to buy expensive fuel because you drive an expensive car, that is a personal decision you are entitled to. Do not blame anyone for your expensive lifestyle,” Executive Director for INSTEPR, Kwadwo Poku reiterated.

He disclosed that with the present international price, using 6.4 cedi to dollar rate, the petrol price at the pump should be Ghs6.30 adding that “that is if the OMC keeps their Marketer’s margin Below 40 pesewas a litre.”

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“At $840, the prices at the pumps were Ghc6.9 per litre. The OMC’s marketer/dealer margin at this price was about 30 to 35 pesewas per litre. Everyone was blaming the Government for high taxes. GPRTU threatened strike action, which made Goil reduce prices to Ghc6.70.

The Executive Director indicated that Goil is selling at GH¢6.60 per litre meaning they have increased their Marketer’s margin above 60 pesewas per litre thereby depriving Ghanaians of lower fuel prices.

“Now, what a lot of people did not know is Goil was able to reduce from GH¢6.90 to GH¢6.70 because the international prices in that window had dropped. Naturally they will have increased their Marketer’s margin instead of passing the reduction to Ghanaians,” he added.

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