Petroleum prices to increase by 6% - IES

The Institute of Energy Security (IES) has disclosed that petroleum prices in Ghana will go up again.

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 Institute, the prices are expected to shoot up by 6%.

This, they said, is largely influenced by the sharp depreciation of the cedi against the US dollar.

“Other factors include the 3.33% increase in the price of Brent crude, the 2.71% rise in Liquefied Petroleum Gas (LPG) price, the 3.58% increase in the price of petrol, and the 4.50% jump in diesel price; all on the international oil and fuel markets”, it added.

Crude oil prices rose on Thursday, 24th February 2022 when markets became aware of a military operation sanctioned by the Russian leader, Vladimir Putin. The so-called “special military operation” in Ukraine organised under the hand of the President fueled market anxiety over the potential impact for oil and gas supply from the region and the escalating tensions of a potential World War III.

Recently, the Vice President Dr. Bawumia said government is not to be blamed for the recent increases in petroleum prices.

He said the increments are due to the turmoil in the petroleum sector on the international market.

Speaking at the National Energy Transition Dialogue in Accra, Dr. Bawumia said the global movement to cut back on fossil fuel in a bid to meet the net-zero emission level is already taking a toll on the global economy as funding for oil exploration and exploitation shrinks.

“We all have to be aware that this transition is going to take place over the next 30 years, but the costs of that transition are being felt today. There is less and less funding available for oil exploration and exploitation, and we are seeing this in an increase in oil prices globally. We in the developing countries are facing these very high costs of petroleum prices, and that is resulting in many economic impacts such as inflation as prices of goods increase in response to the increase in petroleum prices.”

He further stated that “There are many who have said that the petroleum price increase is going to remain at the high levels; we are not going to see any major declines. How do we as developing countries like Ghana adjust to this new reality, if it becomes a new normal of high oil prices and its impact on the macro variables in our respective economies?”

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