The Chief Executive of the Institute for Energy Security (IES) Nana Amoasi VII says the three main factors driving up fuel prices are the weak cedi, unavailability of dollars and rising prices of crude on the international market.
Government has sent a delegation to Abu Dhabi in an effort to negotiate what President Akufo-Addo said was cheap supply arrangements.
Speaking in an interview with Sena Nombo on the Gold Morning Conversation, Chief Executive of the IES Nana Amoasi VII said the move by government does not address the main factors influencing increases in fuel prices.
He wondered how government officials with little knowledge of the petroleum industry can identify cheap supply arrangements better than business men who have spent years importing refined petroleum products into the country.
Nana Amoasi VII said the poor management of the cedi which has led to the Ghanaian currency’s poor performance against the major trading currencies especially the dollar is a major factor driving up prices.
According to him despite the high price of the dollar, importers of petroleum products are struggling to get the currency to import their products.
The IES Boss said the Bank of Ghana and the Banks have only been able to supply 40% of the $450million that businesses need to import refined petroleum products into the country.
Nana Amoasi VII cited an incident in which three vessels conveying refined petroleum products had to leave to other countries because importers could not get the dollars needed at competitive rates to pay for the products.
He said identified rising prices of crude on the international markets as one of the growing threats to stabilizing fuel prices in the country.
Source: Sena Nombo/Radiogoldlive.com
