Fuel prices up 4-6%

• Posted on August 18, 2015
• by Nana Kwesi Coomson
• Comment

The price of fuel at the various filling stations in Accra have witnessed an increase between 4 and 6 percent per litre while a little over 3 percent increase has been recorded in the price of a litre of diesel.

The usual fortnightly price review announced recently by the National Petroleum Authority (NPA) which has occasioned these, is aimed at achieving full deregulation of the downstream petroleum sector.

Prices sighted by this paper at a few pumps around Nima and Kwame Nkrumah Circle, revealed that Shell was selling a litre of petrol currently at GH¢3.49 from GH¢3.31 previously. A litre of diesel was sold at GH¢3.00 from GH¢2.90 formerly. Allied Oil was selling a litre of petrol at GH¢3.43 from GH¢3.30 while its diesel sold at GH¢3.00. At Total and GOIL, no new prices were displayed and some officials interviewed there said they were yet to receive confirmation of the new prices from their superiors.

Cedi’s fall cited

At the bottom of the fuel price rise is the usual pummeling of the local currency by the major foreign currencies on the forex market.

The local currency (cedi) has depreciated further against the major foreign currencies on the forex market.

As at press time yesterday, the Ghana cedi was going for GH¢4.11 to a dollar as against GH¢3.92 on Friday.

This meant buyers had to commit GH¢4.11 to get a dollar and GH¢6.41 for a pound.

The Bank of Ghana’s website quoted GH¢3.92 for a dollar and GH¢6.12 for a pound.

The BoG previously pumped $14 million per week onto the market – a move which several economists predict was not sustainable, but increased it recently to help shore up the cedi significantly.

The local currency started depreciating against the major foreign currencies at the beginning of January last year and continued until July 8, this year when it appreciated temporarily against major foreign currencies.

Nevertheless, the price of crude on the world market hit below $42 dollars a barrel at the end of last week but has managed to rise up to $42.50.

By Nii Ogbamey Tetteh