Fuel prices to hit GH¢7 per litre by close of year – IES predicts

Fuel prices could hit GH¢7 per litre by the end of the year, the Institute of Energy Security (IES) has said.

On Saturday, June 19, some Oil Marketing Companies (OMCs) began to adjust their pumps, selling petrol and diesel at GH¢6.23 per litre.

The 3 percent increment is attributed to rising commodities on the international market.

The Executive Director of the IES, Nana Amoasi VII, speaking on the Sunrise morning show on 3FM, mentioned: “We have projected that by the next six months, we will buy a litre of approximately or close to GH¢7 if things continue the way it is going.

“Unfortunately, this is what we will arrive at. Unfortunately, this is not what we expect to see,” he told host Alfred Ocansey.

“Per our projection, there were clear indication this was going to happen. Largely, we are importers of petroleum products and the quantities we consume in a day is far in excess of what TOR produces.

“Last year, we sought for more than 95 percent of our product and so anytime you see the price of crude oil going up, it has corresponding impact on petrol, diesel and the like,” said Nana Amoasi VII.

Nana Amoasi VII said there are internal mechanisms to help cushion Ghana against price shocks, including revamping the Tema Oil Refinery (TOR) but that is not helping, he said, while the Bulk Oil Storage and Transportation (BOST) is also supposed to help do same especially in periods that the country has low oil pricing they can store.

“So, for the next six or 12 weeks, whether we import or not, BOST has enough product to give to us but this mechanism has also broken down.”