Skip to main content

Petroleum prices likely to go up on July 1


Prices of petroleum products could go up by 10% from Wednesday morning, unless government steps in to absorb the expected increase.

According to Joy Business analysis on the factors and formula that guides the price review by the National Petroleum Authority (NPA), every two weeks prices of the various products could go up between 5 to 10 percent.

The challenge for the NPA, however, has always been who should take up this cost.

Should it be government, importers of the product, the marketers or allow the consumers to pay for the actual cost of every litre purchased at the pumps?

But with the IMF pushing for an end to government subsidies, consumers are most likely to be at the receiving end of the fuel price hikes.

Government may still do all within its power to cushion consumers in light of the current economic challenges and the political implications of another fuel price increase barely two weeks ago.

Nevertheless this might come with its own challenges, as funds meant for other projects or businesses could be sacrificed to ensure that prices do not go up.

The current debts owed the Bulk Oil importers is said to  have hit about  3.4 billion Ghana cedis,  a situation which has come about as a result of unpaid subsides.

So will it be prudent to keep prices unchanged come this Wednesday?

Some analysts say the increase on Wednesday is being influenced by the local currency’s depreciation, which is forcing importers to look for more cedis to bring the same volumes of petroleum products into the country.

Others say that the actual deregulation policy – where importers and marketers price the commodity in order to recover the full cost of every product sold – kicks off this Wednesday.

An increase in prices of petroleum products could have serious implications on the cost of living, inflation and transport fares.

Joy Business is learning that there could be another increase of about 4 percent by the middle of July before the regulator finally allows the forces of demand and supply to determine prices at the pumps.

These increments in petroleum products should facilitate the clearing of all the debts owed Bulk Oil distributors as a result of unpaid subsidies - that is should it allow the expected fuel price increase to pass to consumers.

Prices of the various products went up by 4 percent on the middle of June this year. 
Credit: joybusiness

Comments

  1. Hi I was searching for the blogs for many times, now I have reached at the right place.Moh and Associates Oilfield Consultants

    ReplyDelete

Post a Comment

Popular posts from this blog

Akuapem-Apirede to promote tourism

By: Fred Yaw Sarpong sarpong007@gmaail.com
The Chiefs and people of Akuapem-Apirede in the Okere Constituency of the Akuapem North Municipality have put in place strategic plans to promote tourist sites in the town.
Apiredehene, Nana Saforo Okoampah III told the Daily Express that their vision is to develop Apirede in a modern way.
“We want to have a modern society and environment. We are doing this on the basis of promoting tourism here,” he added.
According to the Apiredehene, it’s their plan to promote the historic sites and the geographical location of the community.
Apirede is one of the 17 towns that forms the Akuapem State and historically, it used to house the armours of the Akuapem State. The community is part of the Nifa division of Akuapem.
He stated that one of those things was called ‘Odosu’ (the war god for Okuapemhene). “The Chief Executioner in those days for Akuapem also came from Apirede and items that he used were also kept here,” he stated.
“These are a lot of things …

PIAC told to go to court to enforce recommendations

By: Fred Yaw Sarpong
sarpong007@gmail.com

The Public Interest and Accountability Committee (PIAC), the mandated body to monitor the use of Ghana’s oil revenues has been asked to go to court to seek strict compliance of the laws covering accountability of oil funds in the country.

According to Dr. Steve Manteaw, the Campaign Coordinator for ISODEC and a member of the PIAC , it’s time for PIAC as a body to consider going to court to compel institutions responsible for managing Ghana’s oil revenue to answers some questions concerning the expenditure of oil funds.

He pointed out that there are several recommendations made by the PIAC in its past reports on management of petroleum revenues, and a lot of these recommendations has received no positive response from the institutions concerned.

He disclosed this to the Daily Express at a three-day workshop on Interrogating the 2016 Semi Annual PIAC Report at Koforidua in the Eastern Region.

The workshop was organized by the Institute of Financ…

BoG shuts down two financial institutions

The Bank of Ghana has closed down two financial institutions in the country. This was after the central bank investigation revealed that the two companies were operating without approval.

The two companies were Agro Development Fund Services Limited (ADFSL) and Hebron Financial Investment Limited (HFIL).

The Daily Express gathered that the ADFSL was asked to stop operating after the central bank realized the institution had not been licensed to take deposit from the public.

A statement from BoG said the ADFSL continued to operate despite the orders from the Bank of Ghana. It however closed down ADFSL’s operation until further notice.

The Bank of Ghana said that the ADFSL is located at Asufufu, opposite the Sunyani Traditional Council in the Brong Ahafo region.

“The decision to close down ADFSL is in furtherance of section 20(2) (g) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). Bank of Ghana has investigated ADFSL thoroughly and has concluded that its a…