Cedi depreciation causing increase in fuel prices – COPEC

• Posted on January 18, 2017
• by Nana Kwesi Coomson
• Comment

The Chamber of Petroleum Consumers (COPEC) has blamed the continuous fall of the cedi against the dollar for the recent price hikes of fuel at the pumps. According to COPEC, the situation has resulted in speculations leading to an increase of about 4 to 10 percent in fuel prices.

Fuel prices at the pumps saw an increase yesterday after an initial increase last week. Speaking to Citi Business News, the Executive Secretary of COPEC, Duncan Amoah called for an immediate review of some of the petroleum taxes to cushion the ordinary Ghanaian. “Primarily, what is accounting for all of these seems to be the Cedi depreciating further against the dollar; and in the industry, speculation is that, it is going to hit about 4.5 before the end of the month [January],” he explained. Mr. Amoah insisted that there is the need to review some of the taxes to bring some relief to Ghanaians.

“Today as we speak, the petroleum tax alone is driving all of us to the point we are seeing ourselves in… the taxes that we have been complaining about like I indicated; the national petroleum tax initially, was around 33 pesewas per litre, but today it has shot up to almost 54-55 pesewas per litre,” he  said. Checks by Citi Business News indicated that, the price of a litre of petrol went up between 8 and 11 percent, while the same quantity for a litre of diesel is up between 9 and 11 percent.

A litre of petrol at some major Oil Marketing Companies (OMCs), is now selling between GHc 4 and GHc 4.15. These hikes have attracted some agitation from consumers who say the increment is too high. Some commercial drivers have also begun adjusting their fares following the increase in fuel prices.

 By: Lawrence Segbefia