Ranking Member of the Mines and Energy Committee, Adam Mutawakilu, has attributed the increase in petroleum prices to government’s inefficiency in ensuring the stabilization of the cedi against major international trading currencies.
His observations come on the back of a 2 per cent increment in petroleum prices over the weekend.
Speaking on 3FM’s Sunrise morning show, Mr. Mutawakilu claimed government is making consumers pay for their inefficiency.
“When the cedi depreciates, it affects petroleum prices, and we are all aware that the cedi has escaped jail. Vice President Dr. Bawumia is not able to arrest it, and definitely, it will translate to increase in petroleum prices,” he said on the show.
According to the Damongo MP, the argument that increment in petroleum prices is solely determined by world prices is cannot hold.
In his view, the manner in which government manages the economy also influences the prices of petroleum.
“We must be very clear about the petroleum build up, and the factors that influence the increase in fuel prices. Apart from the international world crude increase, there are other factors that contribute to the increment,” Mr. Mutawakilu told explained.
Mr. Mutawakilu said the poor management of the economy is what is contributing to the constant increases in petroleum prices in the country.
“My problem is why the inefficiency of the government should be transferred on poor consumers, because it is as a result of the inefficiency of government that the cedi continues to depreciate against major currencies,” he argued.
Ghana, he said, has no strategic petroleum reserve to cater for the country’s needs when there is shortage of petroleum prices.
“Today, we do not have one day strategic reserve, BOST do not have even one day strategic reserve. So, when this country runs out of fuel, it means we go into crisis straight away.”
The MP also called on government to provide subsidy for petroleum prices.
According to him, it is government’s responsibility to ensure that the cedi stabilizes or improves.
He also urged government to scrap the Special Petroleum tax.
By Irene Amesimeku| 3news.com| Ghana
The post Gov’t inefficiencies in stabilizing the cedi partly cause of fuel price increment – MP appeared first on 3newsgh.
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