Sat. Dec 3rd, 2022

Fuel prices to go up by 3 percent

The Institute of Energy Security (IES) is predicting a 3 percent increase in fuel prices for the second  half of July.

According to the institute, prices will go up by about three percent barring an intervention from the National Petroleum Authority (NPA).

In an interview with Citi Business News, Research Analyst at the IES Mikdad Mohammed attributed the expected increase in fuel prices at the pumps to a marginal increase in the prices of gasoline and gasoil on the world market, as well as a depreciation of the Cedi against the dollar.

“When you look at the price of Gasoline and Gasoil on the international market, we have an increment of some 4.58 %, that is for Gasoline (Petrol) and then for Gasoil (Diesel) we have some 2.29 % increment. Now when you put these aside, and we look at the trading currency, specifically the Cedi’s relationship with the dollar, you will realize that when you compare it from the last window to present prices you will realize that we have had a depreciation of some 1.92 %. It is based on these computations that the IES is calling on consumers to expect a 3% increase in prices at the pumps.”

Mikdad Mohammed however reiterated IES’s call on the NPA to apply the price stabilization and recovery levy mechanism to ease the burden on consumers.

“At all points when IES makes these projections we inform the public that the NPA has at all times the opportunity of kicking in the price stabilization and recovery levy, which is the fund that has been established to serve as a stabilization factor when prices are going to a threshold that the NPA wants to bring down. At all points in time they have the opportunity of applying that levy to make sure the increment does not come down finally to the consumer.”