Weak cedi performance the reason for rising fuel prices

Edward Bawa, the Bongo Member of Parliament, has stated that the Government of Ghana and the Bank of Ghana (BoG) must find a way of making dollars available at a fixed rate to aid oil product importers.

According to Mr Bawa the weak performance of the cedi against other major trading currencies especially the dollar accounts for the skyrocketing prices of fuel, a situation he thinks if the cedi is offered at a fixed rate to importers of petroleum products it will help lessen the current situation.

The suggestions he noted when done will control the rising level of fuel prices in the country.

According to him, both the BoG and the government of Ghana must “find a way of making available to the oil importers, the dollars at a fixed rate for certainty and for planning,” adding, “I say this because as we speak now, our total import bill, oil or downstream sector alone constitutes 20 per cent of our total import bill. So it is a huge chunk”.

Mr. Bawa as per 3news.com stated that “The last time the Bank of Ghana auctioned dollars, it was oversubscribed by about 200miilion”. That he said indicates “very clearly that on the strength of that, the government must begin to start looking at it seriously, how to make the foreign exchange available”.

“That is the only way we can get that sorted. We must also make sure that we stabilize the cedi against the major trading currencies. The way the currency is going, it is embarrassing, it is a bit nauseating,” the Bongo lawmaker noted.