Parliament does not decide how much we charge - BDCs

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January 6, 2016 5:26 PM

In a press briefing to educate the media on the price build up of fuel prices at the pumps on Wednesday, Senyo Hosi said that all parliament did was to impose additional taxes to the price buildup of fuel.

CEO of the Chamber of Oil Bulk Distributors, Senyo Hosi has debunked assertions that parliament approved a 5 percent hike in fuel prices owing to the implementation of the Energy Sector Levy.

“The real determination of prices at the pumps is the job of OMCs. It is not true that parliament approved a 5% price increment. We as BDCs and OMCs now have to factor that tax in our cost build up. Parliament does not tell how much to charge at the pumps.”

The CEO of the Chamber of Bulk Oil Distribution Companies revealed that the taxes have led to an upward change in the cost buildup of fuel by 86 pesewas for Petrol, 93 pesewas, and 33.6 pesewas. This is essentially the effect the new taxes have had on the cost of the fuel.

“ This is how much the tax has added to the price build up of fuel”.

From data made available to Pulse Business the tax component make up 41 % of the cost of Petrol, 42 percent of the price of Diesel, and 28 percent of LPG

Additionally, the new taxes and 86p to the cost of Petrol, 93p to the price of Diesel and 33.6p to the price of LPG.

Based on this data, Senyo Hosi stressed that BDCs have pegged prices lower than the increment in cost build up warrants.

“ With these figures, you will see clearly that we have even increased fuel prices lower than the rate of increase in cost as necessitated by the cost build up.”

He expressed displeasure about the notion that Bulk Oil Distribution Companies are ripping Ghanaians off.

“ Parliament never approved any margins of increase, that is a misconception. Parliament does not tell us how much to charge at the pumps, they tell us what to add in taxes. And that’s what we have factored in our cost. The figures are clear for all to see.”

On why Ghanaians are not experiencing a reduction in fuel prices commensurate with reducing world prices, Senyo Hosi said,

“ The new taxes have robbed Ghanaians of any benefits that could have been derived from falling international prices.”

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