The Executive Director of IES, Nana Amoasi VII, in an interview on the Citi Breakfast Show on Citi FM on Tuesday, November 23, revealed that a good number of the factors that determine the price of fuel in the country are within the direct and indirect control of government.
Fuel shouldn’t sell for more than GHS6 per litre - IES
If the government of Ghana is going to effectively and efficiently manage the economy and energy sector, then Ghanaians must not buy fuel for more that GHS6 per litre, this is according to the Institute for Energy Security (IES).
He noted that even though the depreciation of the cedi against the dollar significantly affects the price of fuel in Ghana, there are a lot more variables that also influence the cost of fuel, which government can do something about.
“If we can and we understand fuel prices work, the price for fuel should not sell for more than 6 cedis per litre,” he said.
Explaining further, Nana Amoasi VII said there are about seven taxes and levies imposed on petroleum products in the country, which culminates in GH¢ 2 per litre.
Thus, reducing or doing away with some of these taxes will help to bring down the price of fuel in the country.
“We are largely exposed to the national market… Irrespective of the international market dynamics, we can reduce our fuel price by removing some taxes or levies and increase it by hiking the taxes and levies. We can reduce our fuel prices if we leave TOR and BOST to work, or increase it if we allow them to rot.”
“If we are able to manage the cedi to dollar relations, it will help. There are a lot of variables we have to look at. We cannot just say the international prices are going up and so ours should go up. When international prices plunged to 20% per barrel, how much did our fuel price fall?”
“When we remove the taxes, and we don’t manage the internal machines to manage our exposure to the international process, we will come back to nought. TOR could have played a key role. BOST could have played a key role,” he added in the interview with Citi FM.
Fuel, specifically petrol, is selling around GHS 6.90 by most oil marketing companies.
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