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Brace yourselves for an impending fuel shortage – IES alerts Ghanaians

The Institute of Energy Security (IES) has warned that the further depreciation of the cedi could lead to an imminent fuel shortage in the country.

Fuel prices hike for the second time in March, here’s how much some stations sell a litre of their petrol and diesel in Ghana

According to the Executive Director of IES, Nana Amoasi VII, this is bound to happen in the coming weeks.

Speaking in an interview on Accra based Citi FM, he said the depreciation of the cedi is a having a toll on oil marketers.

“I regret to announce this bad news. I hope it doesn’t happen. What we have observed over the past few months within the downstream sector of the Petroleum industry is that the depreciation of the cedi and the international oil price rise is impacting negatively on their working capital.

“Between the last few weeks, the cedi has depreciated from about GHS 7.00 to GHS 7.4 giving a clear 40 pesewas on their business. If we are bringing the same quantity of 600 metric tones today, you will need GHS 7.40. That will amount to about GHS 4, 440 and so 30,000 metric tonnes in the next window, you will need an equivalent of about GHS 7.2 million. A clear depletion of wiring capital.”

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These factors, according to him, will lead to the importation of less fuel into the system.

“If the situation continues and it is sustained, we will see a fuel shortage,” he added.

Earlier this month, the Chamber of Petroleum Consumers Ghana, (COPEC) said fuel prices will likely hit the GHS 9 mark before the end of the month.

Executive Secretary of COPEC, Duncan Amoah, said the current prices at the pumps is actually on the downside.

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“What the situation in Ukraine will mean is that international market prices will continue to surge. Again, we also have a situation where the cedi is not doing so well. I foresee the Ghanaian fuel prices crossing GHS 9.00 per litre before the end of the month.”

Only two weeks ago, fuel prices averaged GHS6.4 per litre as the Price Stabilisation and Recovery Levy (PSRL) was reinstated by the National Petroleum Authority.

The Chamber of Petroleum Consumers’ (COPEC) Executive Secretary, Duncan Amoah, said he had expected the increase to be much higher.

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