On Monday, 28th November 2011, a High Court abolished the illegal fuel price margins (disguised as ex-refinery differential) and ordered the National Petroleum Authority to reduce fuel prices by the illegal margins. The margins were up to GH¢1 per gallon.

Immediately, Government reacted that if it complied with the Court’s ruling, all fuel prices would rather go up because the money collected from the illegal price top-ups is used to reduce fuel prices. So without the illegal margins, government cannot reduce fuel prices which means the prices would have to go up. It was a strange logic.

But, while giving this explanation in public, the NPA filed a stay of execution asking the Court for permission to continue charging the abolished price top-ups pending the determination of an appeal the NPA had filed. On Tuesday, 10th January 2012, the Court will rule on whether or not to stay execution of the ruling.

Strangely, yesterday, while waiting for the Court to rule, the NPA, in consultation with Cabinet, announced fuel price increases with the illegal fuel margins still included. The new prices are:

It is important to note that Ghana has a hedging arrangement that guarantees us stable prices for our crude oil purchases. So the explanation offered by government that the fuel price increases have been due to increase in crude oil price is not credible.

Besides, if the ex-refinery differential is used to reduce fuel prices as government claims, then why these increases when the illegal price margins are still in place in spite of the Court’s order?

And all these are happening at a time when Ghana is a crude oil producing economy!

It is obvious that government is determined to use petroleum pricing to take money from the citizenry at all cost. In particular, government and the NPA have made a conscious decision to defy the courts and bear the consequences. This is a dangerous development, and a threat to our constitutional order. It amounts to a coup against the judiciary.

We are renewing our call on civil society and the media, and especially the institutions with representation on the NPA governing board, namely, the Petroleum Workers Union, the Chamber of Commerce, and the Chamber of Mines to take keen interest in the workings of the NPA to ensure that the rule of law and the public interest are protected.