The Russian-Ukraine war and COVID-19 are not reasons for fuel price increases, according to COPEC.
According to Benjamin Nsiah, Head of Research at the Chamber of Petroleum Consumers Ghana (COPEC-Gh), claims that fuel prices have risen due to the Russian-Ukraine war and the Covid-19 pandemic are false.
Speaking on Rainbow Radio 87.5Fm's Frontline, he stated unequivocally that the war has not caused fuel prices to rise.
He explained that global prices were drastically reduced at the peak of the pandemic and thus could not be the cause of the increase. He was speaking to the show's host, Kwabena Agyapong.
According to him, even when global prices were low, the exchange rate dealt Ghana a significant blow.
He stated that the exchange rate is one of the major threats to pricing in Ghana's petroleum sector.
He stated that because we are an energy-dependent economy, oil imports account for a significant portion of the country's trade balance.
Furthermore, a country with floating exchange rates, such as Ghana, will undoubtedly see an impact on the value of its currency as oil prices fluctuate.
He explained that because oil contracts are denominated in US dollars, changes in the price of oil will always have an impact on foreign exchange demand and supply.
He further asserted that Ghana had lost it on the policies we have implemented in the sector.
"We don't have a policy alternative." We lack direction, our policies are stagnant, and we lack alternatives. That is the source of our problems. We only buy from Europe because we have no other options, and we are having difficulties as a result of Russia's sanctions."
He suggested that Ghana's prices would be lower if we expanded our options rather than relying solely on Europe.
"Our cedi is not depreciating because of the war." The cedi is depreciating due to internal factors. "We must address these issues and stop blaming others for our problems," he added.
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