On the issue of reducing fuel prices; we can either bear the pain now or postpone it. Reducing prices now (when govt is expected to get less from crude export) will mean govt will have to borrow more to clear the underrecovery and govt borrowing more could push lending rates further up, it could widen its deficit with attendant adverse effect on the cedi. At a time that govt needs to reduce its deficit to stablise the economy, it is not the best of advice to push for a reduction. Rather some savings to clear the underrecovery is a better option. However the NPA and govt need to be a lot more transparent and tell us as precisely as possible how much savings is being made and how it is being applied. In 2008 we had a similar experience and sadly govt gave in to political pressure....A blow which is inevitably yours....
Posted on: Tue, 23 Dec 2014 19:36:20 +0000
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