The Association of Ghana Industries (AGI) on Wednesday called on Government to reinstitute the periodic review of fuel pricing to mitigate the huge impact of price increments.
It also asked Government to budget for any fuel subsidy before it is absorbed and this should be part of the Budget Statement and Economic Policy presented by Ministry of Finance and Economic Planning to ensure control and prudent financial management.
In a statement signed by Nana Owusu-Afari, President of the AGI said government must seek parliamentary approval, if it became necessary to exceed such budgetary allocations.
The AGI expressed concern over the timing of the recent fuel price increment and said is impacting seriously on business.
"AGI is of the view that fuel price reviews must be made amenable to the Automatic Adjustment system that allows periodic price reviews, for effective planning," the statement said.
It said while the cedi depreciated by about 20 per cent and crude oil price on the world market averaged an increase of about eight per cent in the first half of 2012, fuel prices should have been reviewed accordingly.
While noting the challenges associated with implementing the automatic adjustment system when such unexpected changes occur in the determinants of fuel price review; namely the exchange rate and world crude oil price, the AGI urged Government to develop a system to manage such challenges.
In this regard, AGI recommends effective implementation of risk management strategies such as hedging to deal with such situations.
Government must also fix the Tema Oil Refinery, as soon as possible to ensure the continuous supply of finished products including residual fuel oil to Industry, among other products.
"In addition we would be adding value to crude oil thereby generating industrial growth and saving forex," the AGI said.