NPA postpones fuel price review meeting

Moses Asagahe much anticipated review meeting by the Directors of the National Petroleum Authority (NPA) to discuss possible changes to the prices of fuel products has been deferred to Tuesday December 30, 2014, a source within the regulatory authority has told StarrFMonline.com

The meeting, which was scheduled for Monday, has had to be shifted because most of the directors who are expected to discuss the new prices are yet to report to work, the source noted.

All the directors are, however, expected to be at work on Tuesday.

The review meeting has been necessitated by the continuous fall in the price of crude oil on the international market and the subsequent demand for government to reduce the price of the product on the local market.

Crude has witnessed a dramatic drop in price from $100 to $67 in December.

The NPA has resisted calls by several recognised bodies including the Trades Union Congress for a downward review of prices of fuel products.

However, in a statement Sunday, the regulatory body said: “The National Petroleum Authority (NPA) acknowledges the fact that fuel and crude oil prices on the world market have decreased in the last few months warranting a decrease in the ex-pump price.

“However, the NPA was unable to immediately respond to the drop in world market prices because of the huge outstanding debt (under-recoveries) owed the Bulk Oil Distribution Companies (BDCs) to a whopping tune of Ghc412million as July 31st 2014 which the NPA has been paying on a fortnight basis through the over-recoveries (windfall) that has accrued totaling Ghc200million which has been paid to the BDCs”.

The statement noted that the authority is yet to decide whether to retain the current prices or effect some changes.

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