In a few weeks, fuel costs should rise significantly, according to Nana Amoasi VII, the Executive Director of the Institute for Energy Security (IES).
The National Petroleum Authority (NPA) directed the imposition of additional fees in a directive dated April 3, 2024, which was sent to different parties involved in the oil marketing and distribution industry. The fees are 16 pesewas per liter for gasoline, 14 pesewas per liter for diesel, and 14 pesewas for each kilogram of liquefied petroleum gas (LPG).
This came when the NPA decided to halt the petroleum product Price Stabilization and Recovery Levy.
As a result, GOIL, the state-owned Oil Marketing Company, changed the price of gasoline and diesel. They are now retailing for GH¢14.15 and GH¢14.74 per liter, respectively. These changes were put into effect by GOIL on April 4, 2024.
The most significant increase in fuel prices since February 2023, when a litre of gasoline sold for GH¢15.40 and GH¢15.50 for diesel, is now being experienced.
Nana Amoasi VII criticized the suspension in a Friday interview on the Citi Breakfast Show (CBS) on Citi FM, claiming that it was not well thought out before being put into effect.
He cited previous times where prices reached GH¢18 per liter in 2022 to illustrate that the levy had failed to achieve its objective of stabilizing fuel costs.
Nana Amoasi VII issued a warning over an impending spike in fuel costs, speculating that they would go as high as GH¢14.05 per litre, resulting in a double increase.
“The suspension of the levy was not well-thought through because it was clear in the statement that it was intended to relieve consumers of intending price hikes which are necessitated by happenings on the world market and also our own forex market. Then the OMCs increase fuel prices in response to the domestic foreign market and the international fuel market. Unfortunately, a day or two, the NPA comes to say we are reversing the suspension of that levy which is meant to cushion consumers and this time around, the NPA fails to give the reasons for the suspension.”
“We have not seen any impact of this levy on fuel prices over the years because it has not been able to stabilise prices and prices shot up as high as GH¢18 per litre somewhere in 2022 and we are seeing the same thing now. What is going to happen is that fuel is going to increase again. Few have done it already and others are yet to do it and prices will roughly rise GH¢14.05 and so fuel prices will soon see a double increase,” stated.
