According to Benjamin Nsiah, Head of Research at the Chamber of Petroleum Consumers Ghana (COPEC-Gh), there is no evidence to support the assertions that the Covid-19 outbreak and the Russian-Ukrainian war are to blame for the rise in gasoline costs.
He emphatically denied that the conflict is to blame for the increase in petrol costs when speaking on Frontline on Rainbow Radio 87.5Fm.
He clarified that the increase cannot be the result of the worldwide pricing, which at the height of the epidemic sharply declined. To host Kwabena Agyapong, he was speaking.
He said that the exchange rate hurt Ghana significantly, especially during a time when prices were low globally. He claimed that one of the main risks to petroleum prices in Ghana is the currency rate.
He said that because our economy is energy dependent, a sizable portion of the country's trade balance is made up of oil imports.
Furthermore, the fluctuation in oil prices would undoubtedly have an effect on the value of a currency in a nation like Ghana with floating exchange rates.
According to him, fluctuations in the price of oil would always have an impact on the demand and supply of foreign currency since oil contracts are priced in US dollars.
He also claimed that Ghana had lost it with the sector policies we had put in place. "We have no policy choice. We lack direction, our policies are stale, and we have no other options. That is the root of our problems. Without any other options, we can only purchase from Europe, and as a result of the sanctions on Russia, we are having issues.
He stated that if Ghana expanded its alternatives rather than relying solely on Europe, pricing would be lower.
"Our cedi is not devaluing because of the fighting. The cedi is depreciating due to internal issues. We must solve these issues and stop pointing the finger at others, the speaker continued.
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