- Depreciation doubles fuel prices.
- No safety cushion for consumers.
- Government urged to act.
The Executive Director of the Chamber of Petroleum Consumers Ghana (COPEC), Duncan Amoah, has attributed the recent surge in fuel prices to the volatility of the Ghanaian Cedi. According to him, the depreciation of the local currency against major trading currencies, particularly the US Dollar, has resulted in a doubling of fuel prices at the pumps.
Amoah emphasized that the absence of a safety net to cushion petroleum consumers from the effects of rising fuel costs has made Ghanaian consumers vulnerable to fluctuations in the global crude oil market. He explained that any changes in international crude oil prices have a direct impact on the local market, and without a safety cushion, consumers bear the brunt of the increases.
“Ghana lacks a safety cushion, so whatever happens on the global stage, consumers will have to pay for it. Whenever the local currency misbehaves, people will have to pay for it in terms of fuel prices at the pumps,” Amoah stated on the Ghana Tonight show on TV3 on Thursday, May 9.
He further noted that the Cedi’s unpredictability has resulted in a continuous depreciation, which has a significant impact on fuel pricing. As of last week, the Chamber of Bulk Oil Distributors quoted around 13.9-14.05, indicating that any fuel price increase on the international market would be doubled due to the Cedi’s depreciation.
Amoah urged the government to introduce a safety net to protect petroleum consumers from the effects of rising fuel costs, which would help mitigate the impact of global market fluctuations and currency volatility on fuel prices in Ghana.
