Business

GOIL to lose GH¢9M monthly over fuel price reduction, it’s not sustainable – COPEC

The Chamber of Petroleum Consumers (COPEC) is worried that the directive to GOIL to reduce fuel prices could cost it GH¢9 million every month, insisting that is not a sustainable solution.

Speaking on Eyewitness News, the Executive Secretary of COPEC, Duncan Amoah, said the directive was “very problematic” because of the possible effects on GOIL.

Government had directed GOIL to reduce its fuel prices by 15-pesewas to bring respite to drivers who embarked on a sit-down strike on Monday.

“What the directive means to a company like GOIL is a shaving off of GH¢ 9 million in one month if you look at GOIL’s volumes of around 60 million litres monthly.”

“GOIL is listed and as a listed entity with other ordinary Ghanaians as shareholders… We think the approach and how it has been done so far can only create problems for all of us downstream,” Mr. Amoah said.

As a more sustainable alternative for better fuel pricing for consumers, Mr. Amoah said “a long-term measure would mean that we should situate the taxes within the context of international market prices.”

He also said the Government should be more sensitive and “not continue loading taxes onto fuel prices.”

The drivers were demanding a GH¢1.5 reduction in fuel prices.

Fuel prices in 2021 started at about GH¢5 per litre and are now threatening to cross the GH¢ 7 mark.

There are seven taxes on fuel which amount to GH¢1.9.

—citinewsroom

Amenorhu kwaku
Amenorhu Kwaku

Amenorhu kwaku is an author, internet marketer and entrepreneur. He is the founder of SuccessValley, a network community for students and aspiring entrepreneurs