The National Petroleum Authority (NPA) has assured consumers that the Government is working towards the stabilisation of the Cedi to halt the spike in fuel prices.
The downstream petroleum regulator said the recent increments in prices of petrol, diesel, and Liquefied Petroleum Gas had been triggered by “external factors” owing to the instability of the Cedi against the US Dollar.
Speaking to journalists at the maiden Ghana Downstream Awards and Gala Night over the weekend, Dr Mustapha Abdul Hamid, Chief Executive Officer, NPA, said under the deregulated regime, fuel prices were determined by the “forces of demand and supply.”
He said the performance of the Cedi was a major determinant of fuel prices at the pumps, adding that the stabilisation of the economy coupled with consumption of locally-made products would help reduce reliance on imports to strengthen the currency.
“Whiles the Cedi keeps fluctuating, prices will go up. So we will work hard, stabilise the economy, the Cedi gets strengthened and the problems would be resolved,” Dr Hamid said.
Petroleum consumers have expressed concern over the repeated hikes in fuel prices at least in the last three pricing windows.
Currently, petrol and diesel are trading at an average GHS15.10 and GHS15.24 respectively. In January this year, petrol sold for an average GHS 11.24, whiles diesel traded at GHS11.26 at the pumps.
Dr Hamid said the Government’s Gold For Oil (G40) Programme, an initiative aimed at reducing demand for dollars for fuel importation, accounted for about 30 per cent of total fuel consumption, and thus consumers “will not really feel” its impact in stabilising prices at the pumps.
He said the real impact of the Programme would be felt by consumers if the G40 was scaled up to cover for the entire market demand.
Friday night’s Awards ceremony honoured distinguished individuals, institutions, and companies who have contributed immensely to the growth and expansion of Ghana’s petroleum downstream sector.
The sector encompasses all activities involved in the importation and refining of crude oil, as well as the sale, marketing, and distribution of refined petroleum products in the country.
The event, which climaxed the 2024 Ghana International Petroleum Conference (GHIPCon), was organised by the NPA in collaboration with Ghana Chamber of Bulk Oil Distributors, the Association of Oil Marketing Companies, and under the auspices of the Ministry of Energy.
GNA