Oil economist and political risk analyst Dr Theo Acheampong called the government’s alleged move to force GOIL to cut prices by 15 peswas as unsustainable.
According to him, the government should be more interested in finding a lasting solution to the problem of rising oil prices instead of relying on interim solutions to the oil crisis.
His comment was based on the reduction in prices of GOIL petroleum products by 15 pesewas following a nationwide strike by commercial transport owners.
Speaking on the JoyNews Newsfile on Saturday, Dr Acheampong said: “I’m also worried in the sense that if you have a state entity that comes in and tries to distort the market mechanism, the question is how many? time are we going to do this because GOIL can’t keep doing it every time that price goes up.
“Are we then going to say that GOIL will reduce their margin?” It cannot be done sustainably in my opinion, even over three months.
“Because it’s going to eat into their profits and it’s going to eat into the dividends they should declare to shareholders at the end of the year,” he said.
On Monday, December 6, the drivers who are among the owners of commercial transport withdrew their services in the wake of what they called the government’s refusal to cut taxes on petroleum products which they said resulted in the cost. high gasoline, diesel and LPG.
Later that evening, GPRTU communications chief Abbas Imoro on JoyNews’ PM Express said that after a critical meeting between the government and transport operators, the government ordered GOIL to cut prices for relieve commercial drivers.
He added that the government also pledged to review fuel taxes during the mid-year budget review.
However, in a dramatic turn, GOIL in a press release said that the allegations of government interference in reducing its prices are false and unfounded.
According to GOIL, reducing its prices was an internal decision and had no external influence from the government.