Chief Executive Officer (CEO) of the Association of Oil Marketing Companies (AOMCs), Kwaku Agyemang Duah, has provided some clarification as to why fuel prices have increased by over 20% in less than twenty-four hours.
On Monday, fuel pump stations sold a litre of petrol at GH¢15 and GH¢19 respectively.
With a 20% increment slapped on the prices of the products, petrol and diesel went for GHS17.99 and GH¢23.49 respectively on Tuesday.
For the umpteenth time, the depreciation of the cedi is said to be responsible for the further hike in fuel prices.
Mr Agyemang Duah said, “there would be an increase in the next pricing window because of the depreciation of the cedi to the dollar. Over the period, the issues have been piling up, so we have to do something about it.”
However, reports have it that the local currency has begun to appreciate.
As of October 26, a dollar was sold at GH¢13.0148, according to the Bank of Ghana.
A day later, the foreign currency sold at GH¢13.0158, seeing an increase. On October 31, the cedi appreciated as a dollar traded at GH¢13.0156.
At the beginning of November 2022, a dollar sold at GH¢13.0151.
On the matter, the National Petroleum Authority (NPA) has explained that OMCs have been given room to continually increase prices at the pumps in order to avert a shortage of petroleum products.
“Given the fact that the products are actually bought from the world market in dollars, anytime the dollar changes, it affects the character of the pricing. ”
“Yes, we ought to have been operating with the two weeks window framework, but because of the volatility of the cedi against the dollar, and the fact that you ought to be a little flexible with what will be established with the windows within which the prices are supposed to be varied,” Director of Communications at the NPA, Mohammed Abdul-Kudus, said.
The unexpected hike in fuel prices has further exacerbated the conditions of private and public transport operators.
“I used to spend GHȼ350 to fill my car tank but right now it is almost GHȼ600. I don’t make money, sometimes you will drive all day and not earn the money used to purchase the fuel but we are hoping and praying to God that things will turn around one day,” a commercial transport operator narrated.
Meanwhile, aggrieved individuals have called on the government to expedite the process of subsidizing the prices of petroleum products, as announced by President Akufo-Addo last Sunday when he addressed the nation.
As part of efforts to provide affordable fuel to Ghanaians, the government has tasked the NPA to vary its sources of fuel procurement.
“In President Kufuor’s time, we did it with Nigeria, Sahara lifting for us and you could have supply credit lines and a fixed price that you could bank on and it is a very similar arrangement that has already commenced and I am expecting that in the coming weeks the NPA, the Energy Ministry will have the opportunity to provide the details,” said Information Minister, Kojo Oppong-Nkrumah.
Source: The Independent Ghana