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Ghana not benefiting from global fuel price drop due to cedi depreciation – IES

The Institute of Energy Security is predicting an insignificant drop in fuel prices in the Ghanaian market despite the drop in global fuel prices.

IES said this would be so if the cedi remains weak against major trading currencies.

The crude Oil price has fallen by 4% in recent weeks but unfortunately, the cedi continues to struggle on the forex market as it closed trading close to 10 cedis per dollar.

In an interview with Citi News, Executive Director for the Institute of Energy Security, Nana Amoasi III says although fuel prices may reduce, the instability of the Cedi is set to erode all the gains that could have been made in the oil sector.

“Prices on the global market have gone down, but our consumers may not benefit from that because our local currency, the cedi, which is the key variable in the determination of local market prices keeps depreciating against the imparting currency the dollar.”

“If the cedi continues on this tangent, then the Ghanaian consumers may not benefit from any price reduction on the international market. If we are not fortunate, and we keep seeing increases in prices we will see our prices go up.  We may start selling a litre for 17 cedis.”

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