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Fuel to hit GH₵7 a litre in weeks – COPEC warns

The Chamber of Petroleum Consumers-Ghana (COPEC), has warned that fuel prices would in few weeks increase to GH₵7 should the government fail to address contributing factors to the rising prices on the market.

According to COPEC, the government, as a matter of urgency, must reduce the taxes and levies that add to the price build-up and deal with the depreciation of the cedi to ensure price stability.

The Executive Secretary of the energy think tank, Duncan Amoah, said going by the current happenings in the sector, his outfit fears that in a matter of weeks, fuel prices will hit GH₵7 per litre.

Should this happen, Mr Amoah has pointed out that the cost of living will rise, further compounding the plight of Ghanaians who were yet to come out of the woods of the Covid-19 pandemic, as transport operators would transfer slap more fares on Ghanaians.

He said, “fuel is now threatening to get almost GH₵7 per litre. Currently, some oil majors are trading above GH₵6.50 per litre. So, any other increases that may come in subsequent days or weeks, we’re looking at almost getting to GH₵7 per litre.”

He explained that “the time is long overdue for us to reduce the taxes on the price build up. You cannot have a situation where world market prices is going up and taxes are still where they are; it’s a double slap,” he said.

Mr Amoah added that there is also the depreciation of the cedi, “that is a triple tread at the same time, and we think that the Finance Minister should not go to sleep on this one. This is becoming not only inconvenient but difficult to afford,” he lamented.

He said this in an interview that was monitored by The Ghana Report on Joy FM on Thursday, September 30.

For some time now, COPEC has been knocking on the doors of the government to intervene to cushion consumers, as prices of fuel continue to escalate.

The chamber has noted that these marginal increases if left to continue would further worsen the cost of transportation, general goods and services to invariably affect all other productive sectors of the economy and economic life.

It also bemoaned that, “the country does not have seemed to have in place any mitigating policies or programmes in place to cushion the average Ghanaian from the International Market price shocks, as the effects reflect directly at the pumps and on pockets.”

It also complained that the country’s Strategic Stocks, which could have been used to offset these price movements on the international market, was non-existent.

This was because the Bulk Oil Storage and Transportation (BOST) instead of holding strategic stocks have become fully commercial in their outlook, though they continued to take monies from Ghanaians at the pumps in the name of the BOST margins.

“We believe this particular margin ought to be looked at again if we need to bring fuel prices down,” COPEC stated.

The chamber, therefore, called on authorities, “to as a matter of urgency put concrete strategies in place to forestall these increases as it is affecting harshly the general cost of living within the country with transport operators waiting to slap increases on fares in the coming days.”

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