Fuel prices to hit 5 cedis per litre
Prices of fuel are expected to increase to about 5 cedis per litre for the second pricing window in September [September 16th to 30th].
This is largely due to the depreciation of the cedi.
The Institute of Energy Security (IES) who revealed this also adds that other major factors such as the increase in Brent crude have contributed to the increase.
According to the Institute of Energy Security (IES), the price of Brent crude on the world market went up by about 6 percent for the period under review.
Similarly, the prices of finished products for gasoline and gasoil went up by about 2 and 5 percent respectively.
These two developments have also contributed to the expected hike in fuel prices.
The cedi has depreciated by over 3% against the dollar for the first two weeks in September 2018.
Currently pegged at 4 cedis, 76 pesewas to a dollar on the interbank foreign exchange market, some analyst are speculating the currency will hit the 5 cedis mark soon, if measures are not put in place by government to stabilize it.
Research Analyst at the IES, Mikdad Mohammed throws more light on the development.
“This is one of the windows that we are 99 percent certain about the possibility of the increment coming in because based on our research, we understand how ineffective the price stabilization and recovery levy have been in cushioning the average consumer. When it comes to the movement of petroleum prices and from the last window to the current window, we projected stability in the last window.
“We project that two to three percent increment should be expected by the average Ghanaian consumer from the pumps. This invariably means that prices are going to cross over beyond the Ghc5 mark that we have dreaded.”
Even though there is the possibility that competition over market volumes could see some OMCs keep prices stable, the Institute projects that fuel prices will cross GH¢5 per litre” he said.
Currently,each of petrol and diesel is selling at 4 cedis 85 pesewas.
Mikdad Mohammed however strongly objects to any intervention by the National Petroleum Authority (NPA) through the price stabilization levy.
“Now having said all of that and having questioned the effectiveness of the price stabilization and recovery levy, we are asking that government should come and take a bold decision on the future of the special petroleum tax in the special buildup” he added.