The National Petroleum Authority (NPA) has reassured consumers that the Government is taking robust measures to stabilize the Cedi, aiming to mitigate the recent spike in fuel prices.
The downstream petroleum regulator attributed the increments in petrol, diesel, and Liquefied Petroleum Gas (LPG) prices to “external factors,” particularly the volatility of the Cedi against the US Dollar.
Dr. Mustapha Abdul Hamid, Chief Executive Officer of the NPA, explained that under the deregulated regime, fuel prices are largely dictated by market forces, specifically the dynamics of demand and supply. He emphasized that the Cedi’s performance is a critical factor influencing fuel prices at the pumps.
“While the Cedi keeps fluctuating, prices will go up. So, we will work hard, stabilize the economy, the Cedi gets strengthened and the problems would be resolved.”
Dr. Mustapha Abdul Hamid, Chief Executive Officer of the NPA
Dr. Hamid highlighted that stabilizing the economy and promoting the consumption of locally-made products would reduce reliance on imports, thereby strengthening the Cedi.
The G40 Programme is a strategic initiative aimed at leveraging Ghana’s gold resources to procure oil, thereby reducing the dependency on US dollars for fuel imports.
Dr. Hamid emphasized that the full potential of this programme will only be realized when it covers the entire market demand, which would significantly alleviate the pressure on the Cedi and help stabilize fuel prices.
Consumer Concerns
Petroleum consumers have voiced their concerns over the repeated fuel price hikes observed in the last three pricing windows. Currently, petrol and diesel are trading at an average of GHS15.10 and GHS15.24 per litre, respectively.
This marks a significant increase from January this year when petrol sold for an average of GHS11.24, and diesel traded at GHS11.26.
Dr. Hamid acknowledged these concerns, stating that the Government’s Gold For Oil (G40) Programme, an initiative designed to reduce the demand for dollars for fuel importation, accounts for about 30% of total fuel consumption.
However, he noted that consumers might not “really feel” the impact of the G40 Programme in stabilizing pump prices until it is scaled up to cover the entire market demand.
Hon. Hebert Krapa, the Minister of State at the Ministry of Energy, also lauded the NPA for maintaining high regulatory standards and adopting a system that rewards professional excellence in the sector.
The NPA’s assurance of ongoing efforts to stabilize the Cedi and the government’s initiatives to mitigate fuel price hikes are crucial for petroleum consumers in Ghana.
The recognition of excellence within the petroleum sector highlights the industry’s commitment to growth, quality service delivery, and the promotion of gender diversity. As the NPA continues to work towards economic stabilization and the success of programmes like G40, consumers remain hopeful for a more stable and affordable fuel market shortly.
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