The National Democratic Congress Spokesperson on Energy, Dr. Kwame Ampofo is asking government to compel the National Petroleum Authority to further reduce prices of petroleum products. The NPA on Thursday night announced a reduction in petroleum products prices but according to the spokesperson, “the announced reductions are completely at variance with the prices that should be in place in consonance with the prescribed petroleum pricing formula.” In a statement distributed to the media, Dr. Ampofo said “the new announced prices are still far above what they ought to be. “Indeed, spot prices of petroleum products on the international market indicate that a reduction of 20-30% (and not the 14-20% announced by the NPA) is the appropriate margin that would bring the prices abreast with the levels that should prevail on the Ghanaian market, in compliance with the prescribed petroleum pricing formula. As a matter of fact, petrol should not sell for more than GH¢2.80 per gallon (GH¢0.6222 or 62 Gp per litre) as compared with the quoted price of GH¢3.69 per gallon (while diesel should sell at about GH¢2.65 per gallon (GH¢0.5889 or 59Gp) and not the GH¢4.00 per gallon quoted.” The statement charged the NPA of contravening Article 58(1) of the NPA Act (Act 691, 2005) and by so doing colluding with government to exploit the already impoverished Ghanaian consumer by unjustifiably and blatantly misapplying the prescribed petroleum products formula to overcharge consumers. See full statement below. CALL ON NPA TO FURTHER REDUCE PRICES OF PETROLEUM PRODUCTS By Hon. Dr. Kwame Ampofo (NDC Spokesperson on Energy) December 12, 2008 We have noted with much interest the announcement that prices of petroleum products have been reduced with immediate effect from 6 a.m. of December 12, 2008. The announcement is in obvious response to the outcome of the December 7 elections and to Prof. Evans Atta Mills’ assurance to the people of Ghana that when he ascends power as the next President of Ghana he will reduce drastically the prices of petroleum products. We note that the announced reductions are completely at variance with the prices that should be in place in consonance with the prescribed petroleum pricing formula. As a result, the new announced prices are still far above what they ought to be. Indeed, spot prices of petroleum products on the international market indicate that a reduction of 20-30% (and not the 14-20% announced by the NPA) is the appropriate margin that would bring the prices abreast with the levels that should prevail on the Ghanaian market, in compliance with the prescribed petroleum pricing formula. As a matter of fact, petrol should not sell for more than GH¢2.80 per gallon (GH¢0.6222 or 62 Gp per litre) as compared with the quoted price of GH¢3.69 per gallon (while diesel should sell at about GH¢2.65 per gallon (GH¢0.5889 or 59Gp) and not the GH¢4.00 per gallon quoted. In our view, the NPA is in contravention of article 58(1) of the NPA Act (Act 691, 2005) and is clearly colluding with government to exploit the already impoverished Ghanaian consumer by unjustifiably and blatantly misapplying the prescribed petroleum products formula to overcharge consumers. We call on Government to compel the NPA to further reduce the prices of petroleum products in line with the international trends and in a transparent and accountable manner as established by law.