Deregulation of Diesel and Petrol Pricing in Ghana: Perspectives of Commercial Drivers

Abstract

The process to deregulate the pricing of petroleum products kept evolving until July 2015 where fuel prices were completely deregulated, and managed by Bulk Distribution Companies (BDCs) and Oil Marketing Companies (OMCs) under supervision of the National Petroleum Authority (NPA). This phase of the deregulation policy ended the subsidy regime. Deregulation policy was implemented to help stabilise price hikes. As a land mark policy, deregulation has implications. This research assessed perspectives of commercial drivers on deregulation of diesel and petrol pricing in Ghana using Tarkwa as a test case. The methods employed include field visits to lorry stations in Tarkwa; interviews and questionnaire administration; and statistical analysis of data. The study revealed that majority of commercial drivers are aware of the implementation of the deregulation policy in Ghana but do not understand its effects. All the commercial drivers revealed that there are different prices of diesel and petrol at pump stations. Majority were of the view that their choice of a pump station depends on both the price and quality of the fuel, and the proximity of the pump station to their operations. All commercial drivers asserted that the deregulation policy has negatively affected their business. It is therefore recommended that the NPA should insist on price reduction nationwide when prices of fuels are reviewed downwards and also ensure that the right information is efficiently communicated to consumers of petrol and diesel in Ghana especially commercial drivers to minimise the risks of anxiety.