President Nana Addo Dankwa Akufo-Addo has assured that his government is working to address the escalating fuel prices in the country.
Addressing the nation on the state of the Ghanaian economy, the President indicated that the “government is working to secure reliable and regular sources of affordable petroleum products for the Ghanaian market. It is expected that this arrangement, when successful, coupled with a stable currency, will halt the escalation of fuel prices and bring relief to us all”.
Fuel prices in the country keep increasing, with pumps selling petrol at GH¢17 while diesel sells at GH¢19.
The situation has largely been attributed to the depreciation of the cedi against the dollar.
However, President Akufo-Addo said the government was not oblivious to the hard times and the burden hikes in fuel prices have brought on the standard of living.
“I know that the increasing cost of living is the number one concern for all of us. It is driven by fast escalating fuel prices at the pumps, which is caused by high crude oil prices on the world market and our depreciated currency. I know that this is putting intolerable pressure on families and businesses. I know that people are being driven to make choices they should not have to make, and I know that it has led to the devaluation of the capital of traders and painfully accumulated savings”, the President said.
Meanwhile, industry players have warned of tougher times ahead as prices of petroleum products surge again.
What can be done to address the situation?
The COPEC-Ghana Executive Secretary told The Ghana Report, “We have a local refinery that we could have leveraged to get some fuel security at lower prices, but unfortunately, we don’t think there is a political will to refurbish the Tema Oil Refinery”.
Mr Amoah observed a fully functional refinery would cut the logistical cost, which adds to the price build-up by exporting crude to Europe to be refined before importing back to Ghana.
“The need to get TOR back on stream and the need for political interference to be stopped holds the key for all for us,” he underscored.
Additionally, he cited the Bulk Oil Storage and Transportation Company Limited’s (BOST) failure in executing its mandate.
Mr Amoah explained that BOST is supposed to store huge volumes of fuel and release to the market to level prices and to check shortages “without overstretching the already burdened Ghanaian taxpayer”.
However, “we do not see that function of BOST, and they are now focusing on trading…which was not the purpose of the BOST Act but to hold strategic stock”.