The Institute for Energy Security’s (IES) Executive Director, Nana Amoasi VII, predicts a sharp increase in fuel prices in the coming weeks.
In a directive dated April 3, 2024, the National Petroleum Authority (NPA) instructed various parties involved in the oil marketing and distribution industry to impose additional fees. Gasoline costs 16 pesewas per litre, diesel costs 14 pesewas per litre, and liquefied petroleum gas (LPG) costs 14 pesewas per kilogramme.
The Price Stabilisation and Recovery Levy on petroleum products was discontinued by the NPA, which prompted this.
Thus, the price of petrol and diesel was adjusted by the state-owned Oil Marketing Company, or GOIL. Currently, their retail prices are GH¢14.15 and GH¢14.74 per litre, respectively. GOIL implemented these modifications on April 4, 2024.
Fuel prices have risen at their fastest rate since February 2023, when a litre of petrol cost GH15.40 and a litre of diesel GH15.50.
In an interview on Friday, Nana Amoasi VII criticised the suspension, saying it was not well thought out before it was implemented on the Citi Breakfast Show (CBS) on Citi FM.
He used past instances, in which prices hit GH¢18 per litre in 2022, to demonstrate how the levy had fallen short of its goal of keeping fuel prices stable.
With predictions that fuel prices would rise to GH¢14.05 per litre, or a double increase, Nana Amoasi VII warned of an impending spike in fuel prices.
“The suspension of the levy was not well-thought through because it was clear in the statement that it was intended to relieve consumers of intending price hikes which are necessitated by happenings on the world market and also our own forex market. Then the OMCs increase fuel prices in response to the domestic foreign market and the international fuel market. Unfortunately, a day or two, the NPA comes to say we are reversing the suspension of that levy which is meant to cushion consumers and this time around, the NPA fails to give the reasons for the suspension.”
“We have not seen any impact of this levy on fuel prices over the years because it has not been able to stabilise prices and prices shot up as high as GH¢18 per litre somewhere in 2022 and we are seeing the same thing now. What is going to happen is that fuel is going to increase again. Few have done it already and others are yet to do it and prices will roughly rise GH¢14.05 and so fuel prices will soon see a double increase,” stated.