Don’t expect drop in fuel prices any time soon due to Russia-Ukraine crisis – Jinapor warns

Member of Parliament for Yapei-Kusawgu, John Jinapor, has asked Ghanaians not to expect reduction in fuel prices any time soon due to the ongoing geopolitical tension between Russia and Ukraine.

He has asked the Government of Ghana to use the profits made from crude oil sales to cushion Ghanaians during this difficult moment.

The former Deputy Minister of Energy told TV3’s Alfred Ocansey on the Business Focus progemmme that the government has made quite substantial profit from the sale of crude oil.

He said “Based on what is even happening today, because of the geopolitical tension between Russia, the West vis-à-vis Ukraine, you should expect that crude oil prices will not be coming down anytime soon.

“And so, what is Ghana doing? First of all, we are making a huge windfall. If you look at 61 to 100, that represents a 60 per cent jump, in terms of the revenues that we are expecting and so clearly, we are making some very huge windfall which we can use to cushion the ordinary Ghanaian.

“The other issue is that if you look at taxes on petroleum products the taxes are so huge, not just the number of taxes but the rate at which they have increased them.

“In 2021 we introduced what we call the energy sector recovery levy , policing levy, increased and so all those increments culminated in petroleum prices increment of about 13.6per cent instantly. So far the BOST margin has gone up about 200 per cent fuel margin has gone up about 200 per cent , it is just a plethora of taxes.”

Oil prices went up on Thursday, with Brent rising above $105 a barrel for the first time since 2014 after Russia’s attack on Ukraine exacerbated concerns about disruptions to global energy supply, the Economic Times reported.

“Oil prices are soaring with no end in sight as the news of Russia’s full-scale military incursion of Ukraine, immediately putting at risk up to 1 million bpd (barrels per day) of Russian crude oil exports transitioning through Ukraine and the Black Sea,” said Louise Dickson, senior oil market analyst at Rystad Energy.