The National Petroleum Authority (NPA) is set to take a decision on the prices of fuel products Tuesday, December 30.
This will follow a review meeting by the NPA on Monday, December 29, following the considerable fall in the price of crude oil on the international market over the last couple of months.
The commodity has witnessed a sudden drop in price from $100 to $67 in December but government insisted it cannot reduce the price of fuel products due to its indebtedness to the oil marketing companies.
Government has been under to pressure to review the prices downwards to reflect the situation on the world market. Petrol currently sells at about Ghȼ17 per gallon, a price the public considers outrageous.
But the NPA in a statement issued Sunday said it even though it acknowledges the fact that the oil prices have dropped significantly, it cannot readily sell the products below the current prices.
“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 totalling GHC200million which has been paid to the BDCs”.
The NPA after its review meeting will take the decision whether to reduce the prices of the products or maintain it at the current level.
The new price is expected to take effect from Wednesday, December 31, 2014.