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Government Absorbs Fuel Increment

 

Oteng Adjei

Oteng Adjei

Fuel prices might stay the same for the next two weeks as information gathered by CITY & BUSINESS GUIDE indicates that government might absorb the upward adjustment in the price of the commodity for the next two weeks to prevent sharp criticisms from Ghanaians

However, the absorption might cause the country some millions of dollars as information available indicate it would be in the region of $5 million. As the time of going to press yesterday, Cabinet was said to be busily meeting over the issue.

The anticipated increase is expected to be between the margin of 5 and10 percent as the price of crude oil had gone beyond $70 in the past two weeks. The Chief Executive Officer (CEO) of National Petroleum Authority, Alex Kofi Mould, on phone yesterday, declined to comment but explained that the NPA would decide on the fuel prices today.

If government absorbs petroleum products, fuel prices would remain unchanged since its last review in June. Earlier in the week, this paper reported that the CEO of NPA and his team of experts had finished their computation of new fuel prices and were expected to meet the board for approval on Tuesday afternoon.

The review of petroleum prices has become necessary because of the surging price of the commodity, which as at yesterday, was trading at $77.58 per barrel on the world market. Petrol currently sells at GH¢1.11 per liter, representing approximately GH¢5.00 per gallon, while diesel goes for GH¢1.12 per liter, representing a little over GH¢5.00 per gallon.

Kerosene and LPG presently sells at GHp86.45 per liter, representing GH¢3.90 per gallon and GHp79.00 per kilogramme respectively. Just a couple of weeks ago, renowned global investment banks including Goldman Sachs had reviewed their earlier prediction that oil could end the year at $75, saying that the recent global financial crisis, coupled with a weak U.S dollar might push the price of the commodity further.

“We are revising our forecast range for oil up from $70 to $80 for the rest of the year from $65 to $75. Cold temperatures in the US have also been very price supportive. “Sentiments are moderately positive and the fundamentals do not necessarily justify higher prices, but the trend of a weaker dollar has given a big boost,” said Sumisho Sano, General Manager of Research at SCM Securities in Tokyo.

Source: dalyguideghana

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