FUEL PRICE: WHAT IS DEREGULATION EXERCISE?

0
fuel-pump
FUEL PRICE

FUEL PRICE: WHAT IS DEREGULATION EXERCISE?

In relation to the recent increment in fuel prices, the National Petroleum Authority raised concern to review the deregulation policy which has been in effect since 2015. In this article, we shall the issue of deregulation; what it means and how the country can benefit from this deregulation exercise.

WHAT IS DEREGULATION?

Deregulation is the act of removing government controls from an industry or sector to ensure a free and efficient marketplace. By conducting a deregulation exercise, government control is lifted on the industry so as to allow for the forces of demand and supply to dictate the price of goods and services. This deregulation exercise is a policy that was introduced by the government of Ghana. The main objective of this policy was to help reduce the huge losses incurred by the BDCs and OMCs. The losses deprive them of the needed capital to ensure that the business is viable.

READ ON:  5 COUNTRIES WITH THE HIGHEST DEBT- TO- GDP RATIO IN AFRICA

BENEFITS OF DEREGULATION EXERCISE ON FUEL PRICES

Since 2015 when the deregulation policy review took place, several prices of Petroleum products have been announced by the OMCs. Some benefits were also envisaged for the introduction of this deregulation policy. Here are some of the benefits of the deregulation exercise.

First, it is envisaged that deregulation will help promote competition among OMCs to make the price of petroleum products cheaper for consumers. OMCs will thus improve their efficiency and competitiveness to ensure a lower cost of fuel in the petroleum sector. Also, the deregulation exercise will help eliminate subsidies and reduce the debt burden on the government.

REACTIONS TO THE DEREGULATION EXERCISE

Despite these benefits, the Executive Secretary of the Chamber of Petroleum Consumers,  Duncan Amoah says that this deregulation of petroleum has rather increased the prices of fuel. He further explained that, during President Kuffour’s era, crude prices did hit the roof but consumers were not asked to pay another price for fuel. Also, he said that it seems a lot of things were not considered in the deregulation exercise. He rather advised that fuel importation should first be managed.

READ ON:  TOP 10 HIGHEST PAYING AFFILIATE PROGRAMS IN GHANA
Executive Secretary of the Chamber of Petroleum Consumers,  Duncan Amoah
Executive Secretary of the Chamber of Petroleum Consumers,  Duncan Amoah

The Energy Expert, Kojo Opoku also expressed his disappointment at the recent increase in fuel prices.  According to him, deregulation is to be blamed for this rise in fuel prices, because it doesn’t work in the favor of the consuming public. He stated that their deregulation exercise was to enable the petroleum sector to compete, hence, the government has to take a second look at this petroleum deregulation again.

Energy Expert - Kojo Opoku
Energy Expert – Kojo Opoku

Also, for More Interesting Articles, CLICK HERE

RELATED SEARCHES

WhatsApp & Telegram Job Alert

To get daily Job Alerts on Whatsapp, Join Our WhatsApp Group via the link below.

NOTE: PLEASE IF YOU’RE ON ANY OF OUR WHATSAPP GROUPS, DON’T JOIN THIS ONE

CLICK HERE TO JOIN WHATSAPP GROUP

CLICK HERE TO JOIN TELEGRAM CHANNEL

Leave a Reply