Fuel prices to decrease by three percent (3%)

Fuel prices will go down by three per cent (3%) as Government and the Trades Union Congress (TUC) agree to implement President Atta Mills’ concession of a 20% reduction in recent increase of petroleum products.

This agreement was reached last Friday after labour and government engaged in series of meetings.

John Jinapor, spokesperson to Vice President John Mahama, said in a Communique issued Monday: “The TUC agreed to engage the transport unions to achieve some reduction in transport fares in order to benefit the ordinary citizenry.”

“Other short and medium term mitigating measures such as an early conclusion of 2012 National Minimum wage discussions, Public sector wage negotiations, improvement in mass transport system among others would be urgently pursued,” he added.

Meanwhile Chief Executive of the National Petroleum Authority (NPA), Alex Mould, speaking on Joy fm with host Kojo Oppong Nkrumah noted the authority was yet to be notified about the government’s plan to absorb the three per cent.

He added that the NPA will do some analysis and indicate when the policy could take effect.

Below is the full statement

Following the recent increase in price of petroleum products, the Trades Union Congress expressed concern about increased cost of living occasioned by the removal of subsidies. Upon instruction of H.E. the President, the Economic Management Team chaired by the Vice President was tasked to discuss with stakeholders any necessary measures to cushion labour and industry from the adverse effects of the increment. Discussion were fruitful and constructive.

Subsequent to this the leadership of the TUC sought and was granted an audience with the President. At the said meeting, which was also attended by the Hon. Finance Minister and the Chief of Staff, a discussion ensued about a possible 20% reduction of the implemented increment. This discussion was subsequently communicated by the TUC leadership to its steering committee.

H. E. the President directed the Vice-President to continue engagement with the TUC on the possibility of implementing the reduction, taking into cognisance the need for commensurate reduction in transport fares in order to be of benefit to the ordinary citizen.

In pursuance of this the Vice President held a meeting with the transport union operators. At this meeting the operators expressed reluctance to reduce transport fares even in the face of a reduction in the petroleum prices.

At a meeting held last Friday 1st February, 2012, between the Vice President and the leadership of the TUC and attended by the outgoing Minister of Employment and Social Welfare, it was agreed to proceed with implementation of the President’s concession of a 20% reduction in the recent increase of petroleum prices.

The TUC agreed to engage the transport unions to achieve some reduction in transport fares in order to benefit the ordinary citizenry.

Other short and medium term mitigating measures such as an early conclusion of 2012 National Minimum wage discussions, Public sector wage negotiations, improvement in mass transport system among others would be urgently pursued.

Government and the TUC agreed to continue dialogue to ensure industrial peace and continue to work together towards national progress and development.

SIGNED.

Hon. E. T. Mensah,
MINISTER, EMPLOYMENT AND SOCIAL WELFARE