Cedi depreciation contributing to high fuel prices – Xatse Derick

A Research and Policy analyst at the Institute of Energy Security (IES), Xatse Derick Emmanuel has attributed to the recent fuel price hikes to the depreciation of the Ghana Cedi against major trading currencies.

Although he appreciates that the commodity price on the world market has gone up substantially, the analyst believes the prices of petrol and diesel would not have gone up that much this week which happens to be the second pricing window for April 2024.

He also noted that the international market changes resulting from geopolitical tensions in the Middle East, OPEC+ decisions on production cuts also could also be blamed on the hike in crude oil prices which influences refined product price.

Some Oil Marketing Companies have increased prices of petroleum products at the pumps in line with the two-week review period on Tuesday, April 16, 2024. Market Leader, GOIL is selling a litre of petrol at ₵14.99p and diesel is going for ₵14.80p.

In an interview with Oheneba Boamah Bennie on Power Kasiebo on TV XYZ  on Tuesday, Xatse Derick referred to the world market price that had seen a significant rice as one of the causes of the increase of the prices of petroleum products in Ghana.

The Global Standard & Poor (S&P) Platts monitoring of refined petroleum products announced the closing price for the first pricing-window for April 2024. Petrol went for $937.68, diesel $841.38, and LPG $517.38, per metric tonne respectively.

The new price movement reflected a net effect of 7.27% and 0.69% increment in the price per metric tonne for petrol and diesel respectively.

On the other hand, LPG price fell by a whopping 17.52%. It was the second time the product price has recorded such a change.

Xatse explained that if the cedi had not depreciated recently, the price of petroleum products would not have seen such a hike in prices.
“The cedi over the period depreciated about 3 per cent and that also contributed to the price increment to that level. Had the currency been stabilised, the increment would not have been felt that much,” Xatse stated in Akan.

He also mentioned that the reversal of the price stabilisation levy as a component of the price build-up for refined petroleum products by the National Petroleum Authority (NPA) was also a contributory factor for the high prices of fuel in the country.

He hoped the NPA could consider a policy on that levy to cushion Ghanaians as hardship bites hard.

Meanwhile, the IES has predicted that fuel prices could soar in few days.

Although crude is currently selling at $84 per barrel, there is fear that with the tension in the Middle East, the product could hit 100 dollars soon.


Source: Myxyzonline.com

Leave a Reply

Your email address will not be published. Required fields are marked *