Organized labour has called on the government to restore the subsidies it withdrew from petroleum products since December 28, 2011 to help alleviate the economic hardship Ghanaians are facing.
Kofi Asamoah, General Secretary of the Trades Union Congress (TUC), at a press conference on Tuesday in Accra, stated that in countries where governments do not subsidize petroleum products, there was an efficient and highly-subsidized public transport system that benefitted the poor.
�We do not have that in Ghana. The conditions that necessitated the introduction of subsidies by previous governments are still prevalent and there is an overwhelming necessity for government to continue to subsidize petroleum products.�
Explaining further, Mr. Asamoah noted that until the country develops to a certain level where it will be able to lift people above the poverty line, fuel subsidies should not be withdrawn.
On December 28, 2011, the National Petroleum Authority (NPA) announced an increment in the prices of petrol, diesel and Liquefied Petroleum Gas (LPG) ranging from 15 to 30 percent. Just after the announcement, TUC issued a press statement condemning the increase.
�Since the press statement was issued, we have followed with keen interest public reactions, debates as well as the explanations and justifications for the increases from both official and unofficial sources. We have witnessed the arguments and the confrontations between drivers and transport owners on the one hand, and passengers on the other. The TUC has noted with deep concern the hardship that the fuel price increase has brought to workers and their families.�
�Also, we find it surprising that the NPA could announce these increases without any mention of the hedging policy and the stabilization fund given the upbeat assessment the Minister of Finance & Economic Planning gave on the hedging policy in particular.�
The increase, being the second in 2011, contributed to Ghanaians having to endure cumulative increases of between 35 and 60 percent in fuel prices. TUC added that the increase was astronomical given that for the year 2011 pay increase averaged around 20 percent.
�We drew government�s attention to the hardship and the misery these increases could pose on many families. We expressed particular concern about the timing of the price hikes, coming at the tail end of the year and in the middle of Christmas and New Year festivities where a significant number public sector workers had not received their pay before the Christmas holidays.�
Mr Kofi Asamoah said: �We also demanded from the NPA and government information on the performance of the hedging policy and the stabilization fund which were supposed to shield Ghanaians from the unexpected crude oil price movement and prevent such astronomical increases.
The TUC described both the substantive decision to withdraw subsidies on petroleum products and the manner in which the decision was taken as inappropriate. �This was a major policy change with wider implications for workers and businesses. In such decisions, we expect government to engage all stakeholders in order to minimize the impact.�
Subsidies on petroleum products have been an important component of petroleum pricing in Ghana. Petroleum prices have spill-over effects on the prices of a wide range of goods and services.
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