Today research has discovered that, today, under the so-called petrol-price cost-recovery policy of the Mahama administration, Ghanaians are buying a gallon of petrol at a price of about 40% higher than a buyer in the United States of America (USA), which is a capitalist country and has thus always operated at full cost recovery.
Before the 10% reduction in the price of super petrol, the Ghanaian motorist was paying about 44% higher than the US motorist.
At July 20, 2015 the US buyer was paying about US$0.74 per litre, while the Ghanaian buyer was paying US$1.07 per litre, and at 4.5 litres per gallon, the US motorist buys a gallon of super petrol at about US$3.33 in the US, while the Ghanaian motorist buys it at about US$4.82.
At the current inter-bank exchange rate of about GH₡3.20, the US motorist who goes to a petrol (or in their parlance, gas) pump to buy petrol pays the equivalent of GH₡10.66 for a gallon, while the Ghanaian buyer pays about GH₡15.40.
That comes to the Ghanaian paying about 44% higher than the US buyer, but the price will be slightly lower at the pump today because of the last reduction.
In essence, the six year old claim by both the Mills and Mahama administration that they have to raise the prices of petroleum fuels, such super petrol and probably Liquified Petroleum Gas (LPG) to remove subsidies were false, since there were no subsidies on the fuels anyway.
It would be recalled that the Managing Editor of the Insight, Kwesi Pratt, ever demanding, several months ago, an explanation on how the price of a commodity, such as super petrol, that is made up of 48% of various modes of taxes could contain subsidies.
Interestingly, the price of super petrol in the US contains a percentage, which is the US government tax on the commodity, meaning the tax the Ghanaian is paying on super petrol is about 50%.
The information also raises the critical question some economic analysts and even concerned citizens have been asking when they wonder what the Mahama administration has been doing with Ghana’s money.
Most of those who ask do, because every day there is fresh news of sectors of public sector worker whom the state owes allowances and even salaries, and private sector businesses, such as contractors.
The state owes private contractors billions; owes junior doctors 16-17 months salaries; owes Judiciary staff about 6-months allowance; has not employed health sciences students who graduated last year, because as the administration claims, there is no money for their salaries, though there is no question that a lot of them are still needed in the public sector… The list is endless.
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