Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has cautioned that the government may have limited room for further interventions to cushion consumers against rising fuel prices.
Speaking to Isaac Addae on Morning Starr on Starr FM, Duncan Amoah said the government has already absorbed part of the rising cost of diesel through a GH¢2 per litre intervention, making it difficult to provide additional relief without putting further pressure on the public purse.
According to him, the government’s intervention has already prevented consumers from facing an even steeper increase in diesel prices.
He explained that without the GH¢2 intervention, the price of diesel, which is expected to be around GH¢19, could instead have reached GH¢21.
Duncan Amoah described the intervention as the single largest fuel-price intervention by any government, arguing that this demonstrates the extent to which the government has already stepped in to shield consumers from the impact of rising petroleum prices.
He therefore expressed reservations about calls for further government intervention, particularly in the case of petrol, warning that such a move could place additional pressure on government finances.
“I would be a bit hesitant in asking government to go and remove another two cities from petrol. That will mean a lot more losses accruing to government treasury,” he said.
Duncan Amoah noted that the difference between petrol and diesel prices is currently almost GH¢3, making any further intervention a potentially costly decision for the government.
He said while consumers would naturally want government to do more to prevent further increases, the financial implications of such interventions must also be considered.
He argued that the government has already taken a significant step through the GH¢2 diesel intervention and may not have much more room to absorb additional increases without suffering further losses.
Duncan Amoah also attributed the current pressure on fuel prices to developments in the international petroleum market.
He said the prolonged hostilities in the Middle East have affected the global supply of petroleum products, while disruptions around the Strait of Hormuz have further complicated the movement of petroleum products to major markets.
According to him, premiums, insurance and freight charges have also increased significantly, further raising the cost of transporting petroleum products.
He explained that freight charges that were previously around US$80 have now risen to more than US$200, adding another layer of pressure to the cost of importing petroleum products.
Duncan Amoah stressed that the current fuel-price pressures should not necessarily be attributed to bad policies by the current government, noting that some of the challenges are also linked to global developments and measures Ghana could have taken in the past but failed to implement.
He warned that the pressures could persist, with fuel prices potentially rising further in the coming weeks.
He urged consumers to brace themselves for possible adjustments as global petroleum supply constraints and increased costs associated with importing fuel continue to weigh on the market.
Source: Starrfm.com.gh/Pamela Quayson
