Fuel Prices Will Go Up Again – IES

The Institute of Energy Security (IES) has projected that consumers of petroleum goods should brace themselves for another price increase.

Fuel prices are expected to rise by more than 17 pesewas per litre in the next pricing window, according to the IES.

According to Nana Amoasi VII, Executive Director of IES, this would be caused by price rises on the foreign market and the cedi’s continued devaluation.

He also says that the current economic troubles make it nearly impossible to implement proposals for gasoline tax elimination, and that the government should instead rely on the Ghana Stabilization Fund to provide relief to Ghanaians.

“It’s impossible to call for tax reductions or eliminations at this time. While we are fighting the E-levy, lowering petroleum levies is challenging. But then, I believe we may dip into the Stabilization Fund because, if we are not careful, prices could rise by more than 17 pesewas per litre in the next window,” he stated on Citi TV’s The Big Issue.

Fuel prices averaged GHS6.4 per litre only a few weeks ago, after the National Petroleum Authority reinstated the Price Stabilisation and Recovery Levy (PSRL).

However, in the first week of March 2022, fuel prices surpassed GHS 8 per litre.

In February, a barrel of Brent Crude Oil, which was around $66 a year ago and $78 at the start of 2022, increased 7.3 percent to $103.9. As Russia invades Ukraine, analysts have warned of rising global fuel prices.

“Gasoline on the international market has already gone past US$ 1,000 per metric tonne, the same as gas oil, and the cedi has devalued by more than 4% since [Friday], and we still have another week to go,” Nana Amoasi VII stated. So, if we don’t take precautions and this continues, we’ll be in for a free fall, which is really dangerous.”