15% reduction in fuel cannot be sustained – LPG Marketers Association

The LPG Marketers Association has questioned the sustainability of the 15 pesewas reduction in fuel prices by the Ghana Oil Company-GOIL.

Vice President of the Association Gabby Kumi says although the 15 pesewas reduction is a step in the right direction, the move cannot be sustained beyond one month.

This is because GOIL incur some losses in the process which it will have to recoup.

He told Nathaniel Nartey that the reduction is a good business strategy for GOIL as they are likely to have consumers crowd their fuel station.

He said the government should put in place a more sustainable measure to resolve the problem.

“And reduction is good for the consumer at the end of the day but what we need to ask ourselves is, is this measure sustainable?. What it means is that GOIL will have to cut its margins to be able to reduce the fuel price by 15perswas. We have been calling for a bold reduction in the prices of LPG and petroleum products in general, that is a more sustainable approach. This is a fire fighting approach because obviously GOIL cannot do this beyond one or two months so we may even end up paying more,” according to the Vice President of the LPG Marketers Association, Gabby Kumi.

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