Gov't Advised To Insulate Economy From Fuel Prices

The government has been advised to fine-tune the deregulation of the petroleum sector to limit the harsh effects of price fluctuations of crude oil on the economy. The Chief Executive of Unique Trust Financial Services, Captain (retd.) Kofi Amoabeng, who gave the advice, said the economy was too fragile to be left to the mercy of daily rise and fall in prices of fuel. Speaking on Joy FM’s current affairs programme, Front Page, Captain Amoabeng said the vulnerability of the economy to the shocks of crude oil prices on the world market could be better managed. He suggested hedging in the sector, adding that, that would stabilize the price of fuel and help businesses to plan. On politics, Captain Amoabeng emphasized the need for politicians, especially those in power to tap the vast experiences of those who have been in office before. He was not happy with practice of throwing away the old order entirely, saying it did not allow for continuity which was necessary for building strong and efficient institutions. The Unique Trust boss appealed to whoever that succeeds president Kufuor to build on his achievement. Contributing on the programme which was to discuss the President’s State of the Nation Address, the Minority Spokesperson on communications, Mr Haruna Iddrisu, disagreed with the president’s assertion that the economy was strong and resilient. He argued that the government had borrowed more than any other government in the nation’s history and therefore could not pride itself of building a strong economy since the resources were not internally generated. Responding to complaints of micro-economic stability not reflecting in the pockets of Ghanaians, a Minister of State at the Ministry of Finance and Economic Planning, Dr Anthony Osei Akoto, who was also a panelist, said that assertion was wrong. Citing the capitation grant, school feeding programme and National Health Insurance Scheme, Dr Akoto said money that ought to have been spent by parents on pupils in school and health now remained in their pockets. In response to the suggestion on hedging, he said the subject was being seriously considered.