Q: Would NDC reduce taxes on fuel?

A: I can't tell;

Q: Would NDC reduce utility prices?

A: We would strengthen PURC

Though, the National Democratic Congress has made rising fuel prices and high utility prices part of their main arsenal against the ruling New Patriotic Party, when John Mahama stood in for Prof John Atta Mills to tell the country the NDC leader's energy vision, he could not answer the question if the NDC would reduce the rates if voted into power.

On Friday morning, Mr Mahama delivered his party leader's vision at the Great Hall, Kwame Nkrumah University of Science & Technology. The seminar was put together by the College of Engineering of the KNUST, to give a platform for the presidential candidates to present their respective visions on energy to Ghanaians.

Though, the NDC is quick to accuse the NPP of being mean to Ghanaians on utility prices, Prof Mills’ approach to electricity and water price regulations was no more than a firm assurance to "strengthening and reinforcing” the regulatory body:

“The strengthening of the PURC and the building of confidence in the capacity of the PURC to play its independent regulatory role taking full account of the evolving market.”

His response to petroleum prices was not that different. Though, the NDC has been leading the charge on the NPP to take away some of the tax elements on the ex-pump price of fuel, the party could not give even a vague promise that they would do what they have been consistent in asking the NPP to do.

On petroleum, the NDC leader said, “Currently the prices of petroleum products have been rising at an alarming rate.

Much as the rising prices of crude oil on the international market are a factor, there are added costs to the consumer arising from inefficiency and a lack of transparency in many aspects of the operations of entities in the sector as well as outright corruption."

During, Q&A, Prof Mills’ running mate was asked a straight question: "Would an NDC government reduce taxes on petroleum?"

The MP for Bole-Bamboi could only say that his party was yet to look into that but that, yes, they would consider looking at the tax element to see what could be done.

Again, when another question was later on put to Mr Mahama to clarify what the NDC would do differently to the current high utility prices, the Vice Presidential Candidate could do no more than to reiterate his point that his party would make the PURC more independent to cater for the interest of consumers.

Remarkably, none of the four political party leaders who spoke at the Energy Seminar at the KNUST spoke against deregulation. Both Kwesi Nduom of the Convention People’s Party and Edward Mahama of the People’s National Convention, spoke in favour of strengthening the independence of the regulatory bodies.

None of them gave any firm commitment to reducing petroleum or utility prices.

The PURC’s duty is to strike a balance between looking after the interest of the consumer and that of the service provider, as well, Akufo-Addo said, speaking against the "demagoguery" that has characterised the debate and unrealistic calls for price reductions.

The NDC also accused the NPP of lifting the indebtedness of the Tema Oil Revenue to a whopping GH¢500 million (US$500m). "TOR is currently indebted to Ghana Commercial Bank alone in excess of $500m. The Bank of Ghana has expressed its alarm about the solvency of Ghana Commercial Bank. The Central Bank has therefore questioned whether the deregulation policy of government is actually effective," the NDC leader’s speech read.

Mr Mahama said the TOR debt requires "intensive care." But, checks made by this paper indicate that TOR’s debt, not covered by asset, is around $150 million. With about $120m being what is left of the old debt inherited from the NDC and the remainder coming from the operations of the National Petroleum Authority.

A senior source at TOR explained that the refinery always have stock, which is purchased on credit in a revolving manner, so the sale of that stock is then used to pay back stock acquired through the normal credit system.