An article circulating on MyJoyOnline suggests that the prices of petroleum products will reduce this weekend, with petrol falling by 8%, LPG by 7%, and diesel increasing by 3%. The report was a data from the Bulk Oil Distribution Companies, and the price adjustment is a result of some favourable developments in the international oil market. The cost of petroleum products increased about 11% in June 2022.
Petrol is sold at GHS11 per litre, whereas diesel is going for GHS14. Oil marketing companies are to adjust their prices this weekend so that consumers can also benefit from the price reduction in petroleum products in the world market. The Ghana Private Road and Transport Union sensitized citizens on the 16th of June that there could be a possible increase in the price of transportation. The reduction is coming at the right time to help turn around the decision of the Union.
Possible Stability of Prices of Goods and Services
A leading member of the NPP, Gabby Otchere-Darko, tweeted a few days ago that the government has considered sending the country to IMF because of the depreciating nature of the Ghanaian economy. The development will help stabilize the economy for a few weeks if the cost of fuel does not increase in the world market. We know that in Ghana, fuel prices affect every component of the economy, and increase the standard of living and prices of goods and services.
The adjustment in the prices of petrol and gas will help maintain the cost of transportation, food, and services if there are no reductions. The price of fuel affects daily commodities which are transported every day because the higher the price of oil, the higher the price of transportation and traders wanting to maximize profit will then add the cost for the final consumer to incur.
Possible Increase in the Prices of Goods and Services
While the cost of petrol and gas will reduce, the sad news is that the price of diesel will increase by 3%. Already there is uncertainty in the cost of transportation in the country as drivers increase the cost of transportation, sometimes against the government and GPRTU decisions. The increase in the price of diesel can cause drivers who use diesel to fuel their vehicles to increase the cost of transportation, and drivers will follow suit because the transport economic regulator in the country is very weak.
Possible Outcomes
The reduction in the price of petrol and gas taking effect this weekend means that the cost of the living in the country will reduce a little. Speaking about this development a driver who uses petrol in his car said that now his purchasing power will go up a little and can use the money he uses to add to buy fuel for other miscellaneous in the house.
A civil servant at the Ministry of Information told The Vocal Ghanaian that he has parked his car at home because of the rapid increase in fuel prices and he is considering sending it to work again if the reduction takes place. One driver who uses diesel also appealed to the government to absorb the price increase in diesel so that there would not be a price increase.
Crude oil is presently selling at USD117 a barrel in the world fuel market, and we are hoping that the Cedis stabilizes so that we won’t use more Cedis to purchase crude.
The e levy was useless and myopic nature of government, they’re not fit for governing this country, they’re so desperate to embezzle funds of the people. This malfeasance has put the country where it is today: no vision, no accountability, foresight, and so forth. The government of the day so not know where they’re going! Only employing blame game tactics to cover themselves.
I agree very much with you on this one. The government was voted into power because the people believed there was something they could offer. It is just absurd how the government tends to push blame on every other thing but its own incompetence.