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Alert Fuel hikes sign of economic mismanagement-- Lecturer

Government increased levies on various petroleum products last month resulting in a 27% jump in pump price.

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The recent fuel hikes in the country is an indication of economic mismanagement, a Senior Lecturer and Economist at the University of Ghana, Dr. Ebo Turkson has said in an interview with the Business and Financial Times.

Government increased levies on various petroleum products last month resulting in a 27% jump in pump price.

Oil consumers in Ghana pay about GH¢15 per a gallon of fuel, while in the United States of America (USA), a gallon of petrol is sold at just about $2 (about GHC8).

Dr. Turkson said the hikes cannot be explained, attributing it to economic mismanagement.

“I am not too sure why this decision was made considering the fact that world oil prices have fallen and most countries that import oil have rather reduced their fuel prices. That is what we were expecting in this economy so that if utilities have increased then fuel cost must reduce so that consumers will not feel too much the impact of the increment in the utility prices. But we have rather seen fuel prices being increased.' Dr. Turkson said.

Dr. Turkson further said: “It doesn’t define the direction of this economy and some of us tend to believe that the economy is being mismanaged. I am not sure whether any analysis was carried out before implementing policies as these which have negative impacts on the economy,” he said.

Oil prices fell to its lowest in 11 years on Wednesday amid tension in the Middle East between Iran and Saudi Arabia.

Global Brent crude benchmarks were at $34.93 a barrel at 12300 GMT, down 1.5 percent from the day before and the lowest since 2004. US crude futures subsided 46 cents to $35.95 per barrel, continuing their slide from Tuesday.

U.S. crude futures were down $1.25 cents at $34.72 a barrelafter slipping 79 cents the previous day.

 

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