By Kofi Ahovi
The National Petroleum Authority (NPA) may have to release new petroleum prices by next week following a court ruling last week. The new prices would reflect a reduction in petroleum product prices.
An Accra High Court ruled that the ‘ex-refinery differentials’ imposed on petroleum product by NPA is illegal.
Development Data, a policy research and advocacy think-tank, filed the suit against the NPA and Tema Oil Refinery (TOR), seeking a declaration that the ‘ex-refinery differentials’ imposed by the defendants since June 5, 2009, is illegal.
According to the plaintiffs, the ‘ex-refinery differentials’ after ex- refinery and ex-pump prices is an extraneous element introduced by the National Democratic Congress (NDC) government, which usage was not made known.
They claim that contrary to NPA Act 2005, Act 691, the NPA failed to gazette the import parity price of refined petroleum products as at June 5, 2010.
They also sought an order for TOR to cease the collection of the illegal ex-refinery differential for NPA, and another order compelling the NPA and TOR to publicly declare the amount of money accrued from the imposition of the illegal ex-refinery differential, and to pay it into the consolidated fund.
They also asked the court to order the NPA to publish periodically in the gazette import parity prices of the refined petroleum products, and a perpetual injunction restraining the NPA from imposing the ex- refinery differential.
The court which ruled in favour of Development Data also awarded GH¢ 400 cost against the NPA.
The illegal price differential ranges from GH¢1.00 to .40p per gallon on the various petroleum products on the market.
Currently premium is sold at GHp 116.98 per litre, kerosene GHp 91.00 per litre, LPG 83.81per litre and premix GHp 54.27 per litre.
Failure of NPA to announce new prices for petroleum product would constitute contempt. Although it is uncertain whether the NPA will appeal against the decision.
It is however unlikely whether the reduction in the petroleum products would result in a reduction in transportation fares, since they tend to be downwardly inelastic.
The National Petroleum Authority (NPA) may have to release new petroleum prices by next week following a court ruling last week. The new prices would reflect a reduction in petroleum product prices.
An Accra High Court ruled that the ‘ex-refinery differentials’ imposed on petroleum product by NPA is illegal.
Development Data, a policy research and advocacy think-tank, filed the suit against the NPA and Tema Oil Refinery (TOR), seeking a declaration that the ‘ex-refinery differentials’ imposed by the defendants since June 5, 2009, is illegal.
According to the plaintiffs, the ‘ex-refinery differentials’ after ex- refinery and ex-pump prices is an extraneous element introduced by the National Democratic Congress (NDC) government, which usage was not made known.
They claim that contrary to NPA Act 2005, Act 691, the NPA failed to gazette the import parity price of refined petroleum products as at June 5, 2010.
They also sought an order for TOR to cease the collection of the illegal ex-refinery differential for NPA, and another order compelling the NPA and TOR to publicly declare the amount of money accrued from the imposition of the illegal ex-refinery differential, and to pay it into the consolidated fund.
They also asked the court to order the NPA to publish periodically in the gazette import parity prices of the refined petroleum products, and a perpetual injunction restraining the NPA from imposing the ex- refinery differential.
The court which ruled in favour of Development Data also awarded GH¢ 400 cost against the NPA.
The illegal price differential ranges from GH¢1.00 to .40p per gallon on the various petroleum products on the market.
Currently premium is sold at GHp 116.98 per litre, kerosene GHp 91.00 per litre, LPG 83.81per litre and premix GHp 54.27 per litre.
Failure of NPA to announce new prices for petroleum product would constitute contempt. Although it is uncertain whether the NPA will appeal against the decision.
It is however unlikely whether the reduction in the petroleum products would result in a reduction in transportation fares, since they tend to be downwardly inelastic.
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