Co-efficient of fuel pricing
I want to thank all those who in diverse ways mourned with me when I lost my dear wife, Nana Yaa Asantewaa, especially Dr Kwame Addo Kufuor, Mr Albert Kan-Dapaah, Kaakyire Oppong-Kyekyeku, DCE Afigya-Kwabre; the chairman and members of Gyensiamoa Club, management and staff of Graphic Communications Group, Institute of Economic Affairs, National Media Commission and the Ghana Journalists Association.
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There are a number of leading political figures that I invited to the funeral but who have not as yet responded. I am patiently waiting for them since, “se odwan anko a ne nwoma ko”.
Since her demise on October 23, this year, I have been out of Accra and many developments have passed me by. One such event was the 20th anniversary of Radio Eye. It was inspiring that my roommate, President John Dramani Mahama, not only wrote an article, but formally opened the conference marking the anniversary. It was great to see him with Tarzan.
Another matter is the issue of Nayele Ametepeh and whatever names she bears, and her cocaine and the mess created by the Narcotics Control Board. I find it disquieting that my roommate commented on the BNI invitation of two media executives. Whether what the BNI did amounted to detention or otherwise and whether that was proper are questions of law, especially in the face of the repeal of the Criminal Libel law and Article 162 (4) of the 1992 Constitution which provides that “editors and publishers of newspapers and other institutions of the mass media shall not be subject to control or interference by government, nor shall they be penalised or harassed for their editorial opinions and views, or the content of their publications.”
The lady who is purported to have been defamed can assert her fundamental rights in a court of competent jurisdiction. She did not need the intervention of the state to establish her claim. On the other hand, such developments do not enhance the credibility, professionalism and independence of such critical state institutions nor help to insulate them from government control.
My beef today, however, is the new mathematical theory for determining fuel prices. Before the budget was presented, fuel products sold at certain prices. When the Minister of Finance read the budget a Value Added Tax of 17.5 per cent was imposed. Prices should have gone up by that margin to make mathematical sense. Strangely however, Ghanaians heard from the floor of Parliament, not the National Petroleum Authority, that under some unexplained reason, the average increase was a maximum of three per cent for diesel and gasoline and close to 10 per cent negative for LPG.
Was that intended to suggest that we had abandoned the automatic adjustment formula for fuel pricing, abolished the policy of the NPA determining fuel prices and are to be determined by Parliament. Did it also mean that the government, before the budget, met the NPA behind closed doors to fix new petroleum prices and worked out the impact of the VAT?
Prof. F.A. Allotey is the only Ghanaian credited with a mathematical theory. This formula on fuel prices can be another invention. It is only in Ghana that when you impose a tax on an object it can result in a decrease in the base price. Ghanaians need to be told how the formula works otherwise it could only be in the world of mmotia, that such a mathematical theory exists.
So, what is the base price of petroleum products in the country? VAT is calculated after the value of the item or product has been determined. The law provides for zero rating or total exemption from VAT. If an organisation which is VAT-exempt wants to purchase any fuel product, what would be the price at which the commodity will be offered for sale?
Our governments must respect citizens and deal with us transparently. We must understand the basis of policy formulation and give our support. Excessive partisanship once forced the government to reduce fuel prices following demonstrations that were organised when the price of crude oil dropped. In the end, we had to bear the cost in another form, the Tema Oil Refinery (TOR) recovery levy. We did not treat ourselves with sincerity.
Today, we are faced with a similar issue. Crude oil prices have dropped to levels unseen for years. If we need to impose tax on fuel products to raise funds for development, we should be open and sincere. The government must allow the NPA to determine the prices and then impose the tax. That will win public trust and respect for Parliament.
We must never be seen to be learning without thinking or thinking without learning. Otherwise this voodoo mathematics defies logic, rationalism and thought.
