A Deputy Energy Minister, William Owuraku Aidoo believes the Russia-Ukraine war and the devaluation of the Ghanaian cedi should be blamed for the spike in fuel prices in Ghana.
Mr. Aidoo said the government is unable to do anything about the prices owing to the deregulated environment for pricing petroleum prices in the nation.
Speaking on the floor of Parliament on Wednesday, the Deputy Minister said the government will do its permissible best to relieve the hardship of Ghanaians.
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“Sanctions and boycotts on petroleum shipments from Russia, a key exporter mainly to Europe, are lowering supply even more and strengthening upward pressure on gasoline prices. Under the present deregulated environment in Ghana where govenrment is not responsible for deciding the prices of petroleum products, prices on the world market and the devaluation of the Ghana cedi versus the US dollar are passed on straight to the end-consumer,” he added.
Meanwhile, the price of petroleum products is expected to rise by nearly 12% in the next pricing window, which begins in June 2022.
This would indicate that the average price of petrol is anticipated to increase by roughly GH¢1.33 per litre.
While petrol prices are expected to rise by GH1.24/litre, representing a 11.41 percent increase, diesel prices are expected to rise by GH1.43/litre, representing a 12.93 percent 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 pump is presently GH12.282, up from around GH6.5 in January.
This was after petrol and diesel reached the GH¢10 and GH¢12 per litre limits this month.
SOURCE: CITINEWS
