Expect fuel price increment soon – IES warns Ghanaians

Expect fuel price increment soon – IES warns Ghanaians

Ghanaians are to brace themselves for another increment in petroleum products at the pump across the country, the Institute for Energy Security has predicted.

IES explains that what is accounting for the impending increment is the upsurge in the prices of goods on the international market.

And this increment is expected to happen in spite of the suspension of the Price Stabilization and Recovery Levy.

Nana Amoasi VII, Executive Director of IES, further revealed that the projections made could see prices of all the major oil marketing companies cross the 7 cedis per litre mark for diesel and petrol.

“The imminent increase is driven by happenings on the international and the local markets. Over the last two weeks, we’ve seen crude prices rise by more than $7 per barrel and this has impacted prices on petroleum products like petrol, diesel and LPG on the international market. As a result, we are saying the prices will jump by 6.2%, 9.8% and 5.55% respectively. Beyond that, the local currency fell in value against the US dollar and the importers are likely to pass on this additional cost in terms of forex exposure onto the oil marketing company and that will definitely hit the pump,” he said.

The price of a litre of fuel has crossed the GH¢ 7 mark for the first time at some pumps across the country, some two weeks ago, although most of them stayed below the mark.

 Fuel prices have remained a topical issue in Ghana due to the impact on almost every sector of the economy.

The situation has triggered anger among some driver unions, who have threatened to arbitrarily increase their fares.

Meanwhile, there have been complaints from the  Ghana Private Road Transport Union (GPRTU), the country’s largest transport union, that operations of its members have become difficult because they are currently running at losses due to the current price of fuel.

General Secretary of GPRTU, Godfred Abulbire,  said, they expected the government to keep its word by ensuring a reduction in the price of fuel but fuel prices have rather shot up.

He said the situation of drivers and car owners is unfortunate and there is an urgent need for them to be given some respite.

“All the efforts we made before the reading of the budget has not yielded any result. We were told that definitely from the next pricing window fuel prices would come down but that same night, GOIL was able to come down which was an indicator that what we were requesting will be achieved. So we concluded the meeting with the hope that by the following week, GOIL would go lower. Shortly after, fuel prices started going up, and far more than we thought. It is serious. We are running at a very serious loss,” he said.

By: Stella Annan | myactiveonline.com Twitter @activetvgh

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