Senyo Hosi, an economist, has urged the government to be cautious in its efforts to import reasonably priced petroleum products from other countries.
This comes following reports that a government delegation was in Abu Dhabi to lead negotiations in an effort to secure a deal to provide less expensive petrol to the Ghanaian market in response to sharp price increases.
However, the former CEO of the Ghana Chamber of Bulk Oil Distributors expresses caution on the government’s choice.
He explained that on the fuel price market, the purchase of petroleum products is dependent on the stability of the currency as well as other macroeconomic indicators but particularly not dependent on the location the commodity is purchased.
“So, I will encourage government to be a bit more modest in the promises he gives to the public otherwise he will raise expectations that sometimes he just may not be able to sustain,” he noted.
“So just manage your communication and expectations,” Senyo Hosi said in an interview with Accra-based Joy News.
The petroleum expert also believes that one of the ways to address rising fuel prices in the country would be dependent on the appreciation of the local currency which has declined by about 50 percent in about 10 months.