Boss of the National Petroleum Authority (NPA), Alex Mould has rubbished allegations that government is perpetrating a fraud on Ghanaians in the recent fuel price hikes announced in June.

Ex-Deputy Energy Minister, KT Hammond had accused government of fraudulently charging GH¢1.00 more on some petroleum products and stashing the accrued revenue into an ‘unknown’ account.

The charges according to Mr. Hammond were in a form of an ex-refinery differentials which he said were levies imposed on Ghanaians.

The evidence of his accusation was a June 5, 2009 letter signed by the acting NPA boss, directing the Oil Marketing Companies (OMCs) to pay the said differentials into the account numbers.

But in an interaction with the media on Thursday, the NPA boss admitted writing the letter but said no illegality had been done.

The ex-refinery differential, according to the acting NPA boss, was instituted in November, 2006 as a “harmonizing mechanism” and “has been in the petroleum pricing since then.”

He explained the differential is not a levy but “to ensure that premix does not go up by 102% whereas gas oil goes by 20 % or kerosene by 52%. It will be quite chaotic to allow prices to move up in different mechanisms."

“There is nothing fraudulent about this account,” he insisted.

Mr Mould produced as incontrovertible evidence, letters signed by his predecessor, requesting the OMCs to pay the ex-refinery differentials revenue into the said accounts.

Alex Mould said the accounts into which the revenue is paid had also been in existence since 2006 and were no new ‘secret’ accounts opened to stash away public funds.

“The account is not owned by the NPA. It is an escrow-account to accumulate funds and pay the short falls and swings in prices of petroleum products."

The ex-refinery differentials was also to pay for under recoveries incurred in the sale of petroleum products.

He was surprised the ex-deputy Energy Minister was not aware of the ex-refinery differential, or at least claimed not to be, but did not question the motive for his allegations.

On why Ghanaians are still paying GH¢5.10 on a gallon of petrol even when crude oil prices had fallen to $70 per barrel Mr. Mould attributed it to the increase in exchange rates and other charges paid on the international market before crude oil is procured.


Story by Nathan Gadugah/Myjoyonline.com