Business & Finance

Fuel Prices Rise

The second price window of January 2023 has seen an upward adjustment in fuel prices at the various pumps across Ghana.

This is in spite of the rumoured arrival of 40,000 metric tonnes of the “Gold for Oil” fuel meant to meet demand and rein in the cost of fuel in the country.

The rise in fuel prices is being attributed to the sudden depreciation of the cedi against the dollar.

In a tweet, Goil announced petrol has been increased to GHc13.60 per liter and Diesel to GHc15.52 per litre.

This took effect on Monday, January 16.

The cedi is today trading above GHC10 to the dollar.

The “Gold for Oil” policy was first disclosed to Ghanaians on November 24 in a social media post by Vice President Mahamudu Bawumia.

At the time, he said the policy was under negotiations.

He explained the policy was meant to protect the country’s foreign exchange reserve which was fast dwindling causing a steep cedi depreciation and inflation.

“The demand for foreign exchange by oil importers in the face of dwindling foreign exchange reserves results in the depreciation of the cedi and increases in the cost of living with higher prices for fuel, transportation, and utilities.

“To address this challenge, Government is negotiating a new policy regime where our gold (rather than our US dollar reserves) will be used to buy oil products.”

To him, this is a major structural change which will transform the country’s balance of payments and “significantly reduce the persistent depreciation of our currency with its associated increases in fuel, electricity, water, transport, and food prices.

“This is because the exchange rate (spot or forward) will no longer directly enter the formula for the determination of fuel or utility prices since all the domestic sellers of fuel will no longer need foreign exchange to import oil products”, he explained in post.

Reports on Monday said 40,000 metric tonnes of petroleum products under the policy had arrived at the Tema Port and discharged into the receptacles of Bulk Oil Storage and Transportation Company (BOST).



Source: Fuseini

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