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

Deputy AG sues Facebooker over 'malicious' Ameri deal

The Deputy Attorney-General and Member of Parliament for Bolgatanga East, Mr Dominic Ayine has filed a defamation suit at an Accra High Court against a Facebook commentator, Evron Hughes.
In Mr Ayine’s statement of claim, sighted by Graphic Online, he accused Mr Hughes of defaming him in a post he authored and published on Facebook on December 21, 2015, titled “RE: AMERI TRANSACTION”.
According to the Deputy A-G, the “false and malicious” post has provoked “public disaffection” against him and exposed him to public ridicule and contempt.
Describing Mr Hughes as a “self-styled social media blogger and a social commentator”, Mr Ayine said the Facebook post had brought his hard-won reputation “as a respected politician, teacher and lawyer” into “hatred, ridicule, odium, discredit, contempt, opprobrium and reproach”.
The Deputy A-G said the “defamatory words” were authored with the sole intent to reduce him in the estimation of all right thinking Ghanaians, adding that he had received numerou…

Meet Ghanaian female shoemaker

The Saint Ozwald shoe brand

By: Fred Yaw SARPONG
The Daily Express

From her humble beginning in Sunyani in the Brong Ahafo region, a senior high female graduate from the Twene Amanfo Senior high in the Brong Ahafo Sunyani and a Ghanaian now boasts of being one of the most popular Made-in-Ghana shoe brands and has the most number of celebrity endorsements.
Sandra Ozwald, CEO of Saint Ozwald

After Sandrah Ozwald completed school in 2013, her parent couldn't have enough money to help her continue school so she planned to do something for herself by selling ice cream, groundnut cakes or food. Back at the senior high, Sandra used to make groundnut cakes, condensed toffees and ice cream to support herself since her mother couldn't provide all for her.

With 12 siblings and the only girl child (2nd born) among them, and whiles planning which of these to sell, Sandra attended a friend’s wedding and the grooms shoe looked so attractive to her.

According to her, the groom’s shoes were Ma…