The trickling effect of the Russia –Ukraine row may soon be biting hard as the Chamber of Petroleum Consumers has cautioned if duty bearers of Ghana sit aloof about the skyrocketing fuel prices globally our prices could cross the Ghc8 mark at the pumps in the first pricing window of March.
Per the latest standings, a barrel of Brent Crude Oil which was going for about $66 a year ago, and $78 at the start of 2022, jumped 7.3% to $103.9 a barrel just before 10 am GMT on Thursday, the highest level since July 2014.
This was as a result of Russian President Vladimir Putin instructing a full-scale military assault on Ukraine, which has received widespread international condemnation.
Russia’s actions have unfortunately led to steep falls on stock markets across Europe, with the UK’s FTSE 100 index down 2.5% and Germany’s Dax index falling 3.5%. Stocks in Asia had also fallen sharply.
A haven asset in times of uncertainty which is gold — the price rose by 2%.
Already prices of energy have been soaring in recent months amid a confluence of factors, including the pandemic, limited supply and growing tensions between Russia and Ukraine.
Many analysts are anticipating prices to rise much higher still, amid fears of major disruption to the global energy supply.
During an interview on Accra-based Citi FM on the impact of the development in Ukraine on fuel prices at local pumps, Duncan Amoah, the Executive Secretary of the Chamber of Petroleum Consumers, is anticipating things could get worse soon.
“Where you have the third-biggest oil producer and second-biggest producer of natural gas in Russia, currently having an escalation with Ukraine, what you will get is that the supply side is going to be greatly hampered. Once supply side is hampered yet demand continues to grow, prices will only head north.”
“If bombings continue into the weekend, oil will cross $110 a barrel. If the tensions do not de-escalate in Ukraine-Russia now, I can safely see fuel crossing GH¢8.50 per litre at Ghanaian pumps by March 1, 2022,” he added.