Fuel prices up as cedi falls

For the last months, fuel prices have been reviewed upwards pushing consumers to squeeze additional monies for fuel purchases.

The price build for fuel in Ghana is largely influenced by currency performance, prices of oil on the international market as well taxes imposed or abolished.

With the cedi still on a free fall against the major currencies, fuel prices on the local market is set to experience another upward review

Under the deregulation of the downstream petroleum sector the OMCs review prices of petroleum products every two weeks. However since the January, 2017, prices have been reviewed every week.

The petroleum products have increased between 8 and 11 percent within the first week of January. This was also followed by an increase of between 4 and 10 percent last week.

Consumers have been protesting the rampant increases.

Executive Secretary of the Chamber of Petroleum Consumers, Duncan Amoah painted a rather gloomy scenario.

“We are saying that the government should, through the Bank of Ghana, work to stabilize the cedi in order to be able to curtail the rampant increases we are seeing.

In the absence of that, these things are likely to continue and we are likely to have much further increases at pump prices going forward,” he suggested.

As a result of the increases the prices of kerosene, diesel and super are ranging from 3 cedis to 5 cedis per litre and it could increase further with the fall of the cedi.

Duncan said not only should government stabilize the cedi, it must give some minimum dispensation to petroleum importers in the country to allow more competitiveness  in the sector.