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Business News of Tuesday, 4 May 2021


Timing of fuel price increment bad - Energy Expert

Fuel prices have recently been increased Fuel prices have recently been increased

Director of Research and Policy at the Institute For Energy Security (IES), Emmanuel Derick Hatsa, says the timing for the increment in petroleum products is bad.

Ghanaians were hit with recent increase in the cost of fuel at the pumps effective 1st May 2021.

Per the increment, Ghanaians will have to cough up 47p/litre instead of the 30p/litre as approved by Parliament from the budget.

BOST margin was increased last year from 3p/litre to 6/litre has further been increased by an additional 100% from the current 6p/litre to 12p/litre.

The Unified Petroleum Price Fund, UPPF, has been increased by an additional 3p/litre from 27p to 30/litre as well as the Primary Distribution Margin which has been increased by an additional 3p/litre from 8p to 11p/litre.

Fuels Marking Margin, which at this point in our technological advancement should be removed, has also been increased by 5p/litre from 3p to 8p/litre.

Speaking to Kaakyire Ofori Ayim on Atinka FM’s AM Drive, the IES researcher, stressed that the high cost of fuel will lead to an increase in costs of living and hardships.

He noted that the various transport unions are already threatening to increase fares and as such most Ghanaians expected nothing but policy measures in helping reduce the harsh price increment at the fuel pumps.

“We are not in normal times, just like the government has been reiterating everyday. We believe that if government wants to generate income it should exempt taxing products with inelastic demands such as petroleum products.

"We can never do away with petroleum products and immediately such a product is increased, it affects every aspect of life,” Emmanuel Derick Hatsa told Kaakyire Ofori Ayim.