Russia-Ukraine war and cedi depreciation the cause of high petroleum prices – Deputy finance minister

Russia-Ukraine war and cedi depreciation the cause of high petroleum prices – Deputy finance minister

Willam Owuraku Aidoo, a Deputy Finance Minister has stated that the Russia-Ukraine war and the depreciation of the Ghanaian cedi have attributed to the surge in petroleum prices in Ghana.

Mr Aidoo further stated that the government is unable to do much about the prices due to the deregulated regime for pricing petroleum prices in the country.

Speaking on the floor of Parliament on Wednesday, the Deputy Minister assured that, the government will do its permissible best to mitigate the plight of Ghanaians.

“Sanctions and boycotts on petroleum exports from Russia, a major exporter especially to Europe, are reducing availability even further and intensifying upward pressure on fuel prices. Under the current deregulated regime in Ghana where the government is not responsible for determining the prices of petroleum products, prices on the global market and the depreciation of the Ghana cedi against the US dollar are passed on directly to the end-consumer,” he said.

Meanwhile, the price of petroleum products is tipped to go up again by about 12 per cent in the next pricing window of June 2022.

This would mean that the average price of fuel is likely to increase by about GH¢1.33 per litre.

While petrol prices are projected to go up by GH¢1.24/litre which is an 11.41% increase, the price of diesel may increase by GH¢1.43/litre depicting a 12.93% increase.

“Current Crude prices are at $124.96/barrel, resulting in processed Petroleum Products of $1,451.25/MT of petrol and $1,289.97/MT for diesel, coupled with further depreciation of the exchange rate of $1:GH¢8.0483 and the government’s applicable tax rebate of 15 pesewas per litre still in place till the end of June 2022,” the Chamber of Petroleum Consumers said in a statement.

The average price of petrol and diesel at the pumps currently stands at GH¢12.282 after selling at about GH¢6.5 in January.

This was after petrol and diesel crossed the GH¢10 and GH¢12 per litre marks this month.

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