Audio By Carbonatix
Dr Charles Wereko-Brobby, an energy expert and former Chief Executive of the Volta River Authority, has vowed to challenge any increase in petroleum prices in court unless government produces figures to back up its claim that it has been subsidizing fuel prices.
He insisted that government has never subsidized fuel and is therefore not justified in raising prices on the basis it can no longer offset costs.
Speaking on Adom FM’s Dwaso Nsem morning show on Tuesday, February 12, Dr Wereko-Brobby said that government rather places an additional charge on gasoline and uses these extra funds to subsidise the price of kerosene and other products consumed by the poorest in the country. Thus, in his opinion, it would be wrong to describe government fuel pricing as a subsidy.
“If it is 100, they add 20 and such money is used to reduce the cost of kerosene and the rest. Government does not subsidise anything. I’m challenging them to bring the figures to show how they are subsidizing it,” he declared.
“NPA [National Petroleum Authority] is not telling the truth. They are lying. I know the calculations that go into the fixing of prices; they cannot claim government is subsidizing fuel. I’m daring them to bring the figures to show by how much they are subsidizing. I will challenge any increase in court unless they provide the figures to show by how much they are subsidizing.”
The National Petroleum Authority regulates the prices of petroleum products on behalf of the government.
While confirming that such a practice is in place, NPA Public Relations Officer Yaro Kasamba insisted that a small increase in the price of gasoline would represent just a portion of the entire subsidy pot.
Government, he maintained, still absorbs some costs between the time that the oil is imported and consumers buy finished petroleum products.
“Dr Wereko-Brobby is correct, but that is just one aspect of the subsidy,” he explained on Dwaso Nsem.
He pledged to publicize figures regarding the extent of government’s subsidy as soon as he gets the go-ahead from his bosses at the NPA.
“The issue of transparency is not a problem. We’ll publish it [the figures on government subsidies] after consultations with my bosses at the authority,” Mr Kasamba promised.
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