A Senior Lecturer in the Political Science Department at the University of Ghana, Dr Kwame Asah-Asante, has urged the government to implement pragmatic policies to curb the continuous hike in fuel prices in the country.
According to him, the prices which have been on a steady rise in recent times, posed hardships for the populace, thereby affecting their standard of living.
Speaking in an interview on Joy News on Wednesday, Dr Asah-Asante asked the government and relevant stakeholders to find an intervention to mitigate the impact of the rising cost of fuel products.
“Once you begin to have prices going up, then it’s a worrying situation, because the ordinary man is going to suffer. Those who are able to afford and they are in businesses, will pass it on to consumers with regards to the services they render and the products they supply to the public,”
“Government must find careful balance in handling this situation. Any time prices go up, you see workers are up in arms, because transport is an important aspect of the political life of people, without which you cannot function,” he observed.
Fuel pricing in Ghana is deregulated, meaning prices at the international market directly impact prices locally.
That notwithstanding, currency depreciation and taxes also significantly impact fuel prices.
In a statement dated January 10, 2022, the Concerned Drivers Association of Ghana (C-DAG) announced a 40 per cent increment in transport fares across the country from Monday, January 17, 2022.
They cited reasons including what they described as the unbearable hardships facing drivers, as well as fuel price at the pumps, the increase in vehicle prices, and the increment in cost of spare parts and lubricants.
Meanwhile, the Chamber of Petroleum Consumers (COPEC) has hinted that prices of petrol and diesel are expected to go up by 3.7 per cent and 2.5 per cent respectively, in the 1st Pricing Window of January.
In nominal terms, ex-pump prices of petrol and diesel are expected to increase by 24 and 17 pesewas, respectively.
Prices of fuel products have over the period surged due to the increment in crude oil prices on the international market, inflation, and the depreciation of the Ghana cedi.
With an expected adjustment of the price of fuel products in the first pricing window of January, COPEC in a press statement disclosed that consumers should prepare to pay more for the same product.