Kwesi Pratt Jnr, the Managing Editor of the Insight Newspaper, has claimed that due to the high cost of petrol in Ghana, several Ghanaians have begun to reduce their daily movements.
Despite global problems affecting the prices of petroleum products and commodities, Mr Pratt wants the government to expedite intervention steps to protect customers from the suffering caused by an unanticipated spike in fuel prices.
He attributes the current state of affairs to the government’s and officials’ “constant propaganda.”
“I can tell you that, as a result of rising fuel prices, individuals have begun to restrict their movement.” “It is true that we are facing some global issues, but the government can meet the Ghanaian consumer halfway by stabilizing the cedi and lowering or eliminating various petroleum product levies.” He stated, “This will lower the price here.”
The media expert stated, in an interview with Accra-based Metropolitan Television, that rising fuel costs have already had a negative influence on consumers’ and households’ cost of living.
From Wednesday, March 16, nationwide, gasoline prices are expected to rise to ¢11 per litre.
The scenario has been blamed on market instability as well as the increased cost of petroleum on the international market, according to the Bulk Oil Distributors.
The cedi, which is falling against other major trading currencies, is also a factor in the surge in commodity prices, according to Senyo Hosi, the company’s chief executive.
“It’s not so much crude as it is metric tonne products.” You’re actually breaking the pair and, depending on whatever goods and how the OMCs want to add margins to their present prices, you’re likely breaking 11. “What you see in the OMCs publication is quite reflective of the market situation,” he said. “I believe a big chunk of it has to do with some of the onset increase around our current cedi issues.”
Meanwhile, the Institute for Energy Security (IES) claims that the scenario has exacerbated the country’s inflationary pressures.
If the government does not interfere, the price of gasoline and diesel would soon reach at least ¢10.00 per litre, according to the IES.
The IES cited Egypt, Kenya, Togo, and South Africa as examples of countries that have discovered ways to manage key determinants of domestic gasoline prices through government fuel subsidies, ensuring that citizens and companies are not negatively impacted.
Since January 1, 2022, fuel costs have risen by 27 percent.
Fuel prices at the pumps have already risen by 1.8 per liter (27 percent t) for both petrol and diesel, according to a monitoring study from IES Research Analysts, for five consecutive Pricing-windows since the beginning of the year.
According to the research, the price of both gasoline and diesel has increased by approximately 3.33% per litre since March 2021, indicating a 65 percent increase.
While the price of gasoline per litre in Ghana increased by around 65 percent between March 2021 and March 2022, prices in Kenya, South Africa, and Egypt increased by 14 percent, 34 percent, and 26 percent, respectively, during the same time period.
According to the IES, the price discrepancies between the countries listed are due to government actions in response to rising international oil prices, as well as the amount to which local currencies are managed against the US dollar.
Petrol and gasoline prices have increased by more than 3 cents per litre since the beginning of the year.