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Prediction: Petroleum prices to hit GH¢5.9 per litre

Fuel prices are likely to go up from GH¢5.4 to GH¢5.9 if the new taxes imposed on fuel price build-up take effect.

In the 2021 Budget, government proposed a Sanitation and Pollution Levy of 10 pesewas on the price per litre of petrol/diesel under the Energy Sector Levies Act (ESLA)

According to Energy Consultant, Dr. Yussif Sulemana, the increase would be as a result of the new taxes on fuel stated in the 2021 Budget.

He however believes government could have surveyed the international market before coming to a conclusion on the new tax imposition on fuel price build-up.

“I was thinking that if we had looked at these dynamics in the international market and juxtaposed that with the current prices the consumer is paying at the pumps which is almost GHc5.4, it will have been better.”

“Probably, the 30 pesewas cumulative price which will translate to about GH¢5.7, the end user is going to pay; I think it will be difficult. It will catapult the price buildup closer to GH¢5.8 or GH¢5.9,” he intimated.

However, Dr. Sulemana is unsure of how things would be going forward especially now that US ‘shale’ prices have not been determined yet.

He made these statements while analyzing the energy sector in the budget presentation with Daryl Kwawu on Talking Business on Joy Prime.

“We really don’t know where this will go and there are a lot of volatilities in the sector to the extent that OPEC is meeting every month just to check market strength to find out if they have to push in oil or take out oil from the basket.”

“The last meeting ended with OPEC still holding on to the cut. In times past, US ‘shale’ was capable of neutralizing the monopolistic tendencies of OPEC, but as it stands now, US ‘shale’ is not having answers to the current prices on the oil market,” he said.

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Source
Emma Davies

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