The continuous depreciation of the local currency coupled with increasing crude oil prices on the international market could see fuel prices increase to 5 Cedis 50 pesewes per litre at the pumps by the end of the year, a former Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), Alex Mould has warned.
The price of petroleum products until June 11, 2018, have increased by about 7 percent following the cumulative increase in fuel prices between May and the first half of June, leading to a recent increase in transport fares by 10 percent.
Presently, a litre of petrol and diesel are going for 4 cedis 85 pesewas.
But speaking to Citi Business News on the sidelines of the Ghana International Petroleum Conference (GhIPCON) , Mr. Mould cautioned that Ghana’s economy could become fragile if nothing is done to check the cedi’s depreciation.
“With respect to the petroleum price, the issues are that the cedi has depreciated by between 10 to 15 percent and petroleum prices have seen an increase since 2016. So the increase is expected,” he said.
He warned that if government decides to pass on the cost to the public, it will greatly affect the economic wellbeing of Ghanaians.
“The consumer should brace him or herself for more increases. If oil goes to 90 dollars per barrel, and the cedi depreciates to 5 cedis per dollar at the end of the year, we will be seeing a price of 5 cedis 50 pesewas per litre and that is very expensive.”
He observed that prudent measures must be put in place to avert a further depreciation of the cedi.
He stated that increase in the price of fuel will affect everything in the country since will push inflation up.