• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, February 7, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Ghana: Festive season nears, fuel prices to rise to ‘shocking’ levels

October 19, 2021
Stephen KotochiebyStephen Kotochie
in Extractives/Energy, One Top Story, Top Stories
2
petroleum

Fuel attendant pumping fuel into a vehicle

Looks like Ghanaians are gearing up for the festive season, but this time around, the bustle that mostly characterizes such preparations seem to have waned, owing to fears of rising fuel prices and the associated effects of inflation.

Having escalated into an eventual crisis, while surpassing accommodative levels, global crude oil prices have risen to new three-year high, reaching US$85.89 per barrel. Following this, price watchers and market forecasters have cautioned that crude oil prices may hit US$100 per barrel by year’s end.

Though this rising trend in crude is attributed to the rebound in global economic activity, and the switch from gas to oil due to higher gas prices in the UK and Europe, OPEC and its allies continue to remain bearish, hinting that supply will ease only gradually due to oversupply concerns.

RelatedPosts

Nigerian Assayer Grabbed Over $18 million Gold Scam, Slapped With 2 Charges

MTN’s Upward Tariffs Adjustment Takes off Today

Cedi Likely to Reach GH¢100 to the Dollar if Debt Restructuring Fails- A Research Fellow at IFS

At home, fuel prices have remained bullish for the most part of the year. And unfortunately, the odds have been against the consumer: household bills are on the high side; transport fares are rising; food prices are also rising, etc.

  • Fuel Price Increase to be between 30-40 pesewas from October 16- COPEC

Without belaboring the point, the worst is yet to come as market dynamics provide telling evidence that this may not assuage any time soon as the festive season approaches. For the fact that, festive seasons are associated with the surge in economic activities, thus indicating that fuel prices will rise further.

wpid Jubilee Oil Field 640x425 1
An offshore oil well
Govt’s proposed action at slumber

Given the extent of this dire situation, the government’s proposed action to help cushion consumers, although a step in the right direction, appears only to ‘scratch the surface’ of the real issue. Even so, the government’s move to zero the price stabilization and recovery levies (PRSL) is yet to reflect in the price build-up.  

  • Apply GHS948 million in PSRL Account to Cushion Petroleum Consumers- ACEP

Currently, fuel prices stand at GHS6.80, rising from GHS6.52 in early October, 2021. Some experts and pundits have indicated that the pressure from global oil prices will still remain the most contributor to rising fuel prices.

Speaking to the Vaultz News, Dr Yusif Sulemana, an energy analyst and Senior Oil Production Operations Specialist with Petroleum Development Oman intimated that:

“This will be exacerbated by the coming festivities, because there will be much more travelling. And so demand is certainly going to pick up momentum… prices are not going to come down. At best, probably with the help of the [proposed zeroing of the PSRL], they may get stabilized somewhere, but with the rising of oil prices on the global market… this particular tax component may not have much of a significant impact.

“There is no immediate end in sight to this upward trajectory of crude oil prices because, with the posture that OPEC and its allies are taking with this oil prices: As in the inertia in releasing the barrels to the market and Shale patch also not in a hurry to get the market flooded. These are all bullish sentiments… So it’s high time we take very quick actions.”

Dr Sulemana, Exergy Consultant
WhatsApp Image 2021 08 25 at 01.31.44
Dr Yusif Sulemana, Energy Analyst
Short term and long-term measures

In the short term, he advocated that the government must implement drastic measures such as reducing the taxes/levies on petroleum products. By tweaking the levies to a larger extent, the government can help cushion consumers, although the results of such move also depends on international dynamics, he suggested.

In the long term, he said “nations with a seamless link between their upstream and downstream sectors… are in a better place to neutralize the impact of [oil] price shocks.” Thus, the government should “think about building [Ghana’s] downstream [sector] seriously… by having a working refinery, a vibrant and efficient one. If that happens, the situation where oil prices move towards bearish or bullish trajectory, [the country] will be cushioned”.

Indeed, it is only rational that the government puts all its arsenals to work in order to help cushion petroleum consumers. Peeking into the next two months, everything shows that consumers’ well-being do not look too good.

Instead of doing little than enough, the government should be seen as taking the bull by the horn to ensure consumers and businesses are not ‘crushed’ by the effects of rising fuel prices.

READ ALSO: Use 2022 Budget to Reset Fiscal Policy– Dr. Addison

Tags: Festive seasonfuelOPECPetroleumprices

Related Posts

Nigerian Assayer Grabbed Over $18 million Gold Scam, Slapped With 2 Charges
Extractives/Energy

Nigerian Assayer Grabbed Over $18 million Gold Scam, Slapped With 2 Charges

February 7, 2023
MTN’s Upward Tariffs Adjustment Takes off Today
Sub Top Stories2

MTN’s Upward Tariffs Adjustment Takes off Today

February 7, 2023
Cedi Likely to Reach GH¢100 to the Dollar if Debt Restructuring Fails- A Research Fellow at IFS
One Top Story

Cedi Likely to Reach GH¢100 to the Dollar if Debt Restructuring Fails- A Research Fellow at IFS

February 7, 2023
DDEP: Deadline Further Extended To Tuesday, February 7th, 2023
Finance

DDEP: Is Today, February 7, 2023’s Deadline Likely To Be Extended Again?

February 7, 2023
Total Calls in Experts to Assess Mozambique LNG Return
Extractives/Energy

Total Calls in Experts to Assess Mozambique LNG Return

February 6, 2023
GNGC, Joint Venture Partner Signs US$700m Project Implementation Agreement To Construct GPP Train 2
Extractives/Energy

GNGC, Joint Venture Partners Signs US$700m Project Implementation Agreement To Construct GPP Train 2

February 4, 2023

Comments 2

  1. Collins Anfo says:
    1 year ago

    Aside governments and IT giants, those whose own cruel oil in the world seems to control and affect almost every aspect of our lives.
    The surge in the price of oil in recent years is too much and it’s time to put some measures in place. Always we will say “the government”,….. Aahh well “what can we do”

    Is there any way to demonopolise the oil industry?

    That could be a huge threat and can reduce prices.

    Reply
    • Stephen Abankwah says:
      1 year ago

      Demonopolizing the oil industry? The Price of oil is determined by demand of oil and OPEC+’s ability to supply oil to meet the demand. Currently, global demand far outstrips supply.. that’s why the only thing that the government can do is to tweak the taxes and levies because that is what is within its purview.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Adhere to Prudent Professional Practices – SEC to Market Operators

Next Post

Savings and Investments are Drivers of Growth in any Economy- SEC Director-General

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
RMB Urges African Countries To Focus On Constrained Fiscal Policies
Finance

RMB Urges African Countries To Focus On Constrained Fiscal Policies

by Gifty BansahFebruary 7, 2023
Russia Pledges Military Support To Mali
Africa

Russia Pledges Military Support To Mali

by Comfort AmpomaaFebruary 7, 2023
World Bank To Support The Hustler Fund, Contributes Towards Financial Inclusion In Kenya
Banking

World Bank To Support The Hustler Fund, Contributes Towards Financial Inclusion In Kenya

by Priscilla Dziedzorm FiakpornuFebruary 7, 2023
Huge Fear For Bank’s Profitability – Financial Analysts
Finance

Huge Fear For Banks Profitability – Financial Analysts

by Gifty BansahFebruary 7, 2023
Nigerian Assayer Grabbed Over $18 million Gold Scam, Slapped With 2 Charges
Extractives/Energy

Nigerian Assayer Grabbed Over $18 million Gold Scam, Slapped With 2 Charges

by Stephen M.CFebruary 7, 2023
Hammer, Bullet, and Wendy Shay Endorse New Version Of Kwame Yogot’s ‘I Am Feeling Okay’ Song
Entertainment

Hammer, Bullet, and Wendy Shay Endorse New Version Of Kwame Yogot’s ‘I Am Feeling Okay’ Song

by Esther Korantemaa OffeiFebruary 7, 2023
RMB Urges African Countries To Focus On Constrained Fiscal Policies
Russia Pledges Military Support To Mali
World Bank To Support The Hustler Fund, Contributes Towards Financial Inclusion In Kenya
Huge Fear For Bank’s Profitability – Financial Analysts
Nigerian Assayer Grabbed Over $18 million Gold Scam, Slapped With 2 Charges
Hammer, Bullet, and Wendy Shay Endorse New Version Of Kwame Yogot’s ‘I Am Feeling Okay’ Song
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In