Source: Ghanaguadian
The Chamber of Petroleum Consumers (COPEC) has sounded the alarm, predicting a notable surge in fuel prices in the coming weeks. This forecast comes amid concerns over international market trends and the performance of the Ghanaian cedi, factors that are expected to exert upward pressure on fuel costs.
In an interview on Asempa FM's Ekosii Sen program, COPEC's Executive Secretary, Duncan Amoah, highlighted the factors contributing to the anticipated price hike. Amoah cited the reversal of the petroleum levy and its impact on market dynamics, noting that while the situation could have been more dire, the market is still grappling with significant challenges.
"The reversal of the petroleum levy has also contributed to this, and the market is squeezing itself if not the rise would have been more significant," Amoah explained. "We are widely exposed, and the signals as far as international market price movement and the cedi’s performance is concerned don’t look too good, and the fuel prices will continue to increase."
Fuel consumers in Ghana are bracing themselves for the impending price hike following the National Petroleum Authority's (NPA) decision to lift the suspension of the Price Stabilization and Recovery Levy on petroleum products. This move, coupled with additional charges imposed by the NPA on April 3, is expected to further strain consumers' wallets.
The recent surge in fuel prices represents the largest increase since February 2023, marking a significant escalation from previous levels. The current situation underscores the challenges faced by consumers, who are grappling with the economic implications of rising fuel costs.
Reacting to the impending price hike, Amoah emphasized the need for measures to alleviate the burden on consumers, particularly through tax reduction. However, he acknowledged the constraints faced by the government in implementing such measures, citing ongoing negotiations with the International Monetary Fund (IMF).
"We will be deluding ourselves if we expect the government to do anything at the moment because their hands are tied," Amoah remarked. "The onus now lies with the Bank of Ghana to perform the magic they did with in 2022 to appreciate the cedi."
As consumers brace for the impact of rising fuel prices, there is growing concern about the broader economic implications of these developments. High fuel costs have ripple effects across various sectors, affecting transportation, food prices, and overall living expenses.
In light of these challenges, stakeholders are calling for proactive measures to mitigate the impact of fuel price increases on consumers. This includes exploring avenues for tax relief and addressing underlying structural issues that contribute to fuel price volatility.
Looking ahead, the trajectory of fuel prices will remain a key concern for consumers, policymakers, and industry players alike. As the global economy continues to navigate uncertainty, strategies to stabilize fuel prices and support consumer welfare will be paramount in ensuring sustainable economic growth and stability.
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