A gallon of petrol will sell at 20 pesewas less following a marginal reduction in fuel prices directed by government.

The 20 percent reduction in the “recent increase of petroleum prices” is contained in a communiqué signed jointly by the outgoing Minister for Employment E. T. Mensah and TUC Secretary General, Kofi Asamoah and is the outcome of lengthy negotiations.

E. T. Mensah told Joy News government decided that the recent 15 percent be reduced by 20 percent to 12 percent.

Petrol was going for 152.59 GHP before the New Year and was increased by 15 percent to 175.48 GHP per liter or 7 cedis 89.66 pesewas on the gallon, an increase of about 22.89 GHP on the liter or 1 cedi 3 pesewas on the gallon.

The 12 percent on the original price of the liter of 152.59 GHP therefore works out to a new price of 170.9 GHP per litre or 7 cedis 69 pesewas on the gallon compared to the current price of 175.48 GHP per liter or 7 cedis 89.66 pesewas.

Outgoing Minister for Employment E. T. Mensah told Joy News it was to take immediate effect, but the Acting Chief Executive of the National Petroleum Authority (NPA), Alex Mould, explained to Joy Business it will take a while for the reduction to reflect at the pumps.

“…Our board will meet… [and] then decide whether we can effect this immediately…”

But he said though he was not certain the earliest “we can do it is tomorrow but I doubt if it will be tomorrow because of the logistics involved.”

The communiqué further explained the move was a concession from President Mills to mitigate the harsh economic effects on workers of the recent fuel price increase and that short to 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 also be urgently pursued.

It came just days before a nationwide strike threatened by workers over government’s failure to restore fuel subsidies.

The TUC would not immediately comment on the latest development except to say it would have to consult its social partners.

Source;myjoyonline.com