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IES predicts fuel shortage as Ghana cedi depreciates further

The Institute of Energy Security (IES), has predicted that the country could experience a fuel shortage of petroleum products.

Fuel pump

The Executive Director of IES, Nana Amoasi VII, said the shortage will be influenced by the further depreciation of the cedi against the US dollar as well as the increase in oil prices on the international market adding that the erosion of some working capital of the Bulk Oil Distribution Companies is the reason that will trigger the shortage.

He noted that if the situation continues, it will see fuel shortage across the country.

He explained that "There is something to be much worried about and that's the likelihood of the shortage of the commodity on the market on the back of a reported shortage of dollars for the Bulk Oil Distribution Companies, the importers, and the erosion of working capital of some of these importers. The price of crude oil remains high and the cedi value continues to decline.

"We first raised these concerns in March this year and in the following month there were reports of the pocket of shortages of fuel across the country."

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Currently, fuel prices have shot up to almost GH¢16 per litre at some filling stations in the country.

A leading Oil Marketing Company, Total Energies, is selling diesel at GH¢15.99 per litre and selling petrol at GH¢13.10 per litre.

Ghanaians will pay more for goods and services, as the country's inflation rate keeps soaring.

The inflation rate for September 2022 has moved to 37.2 percent from 33.9 percent recorded in August 2022.

Food inflation was 37.8% while non-food inflation was 36.8%.

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Inflation for locally produced items was 35.8% while inflation for imported items was 40.7%.

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