The Executive Director of the Institute for Energy Security (IES), Nana Amoasi VII, has forecasted a significant rise in fuel prices in the coming weeks.

In a directive dated April 3, 2024, and distributed to various stakeholders in the oil marketing and distribution sector, the National Petroleum Authority (NPA) instructed the application of additional charges: 16 pesewas per litre for petrol, 14 pesewas per litre for diesel, and 14 pesewas for every kilogram of liquefied petroleum gas (LPG).

This decision followed the NPA's suspension of the Price Stabilization and Recovery Levy on petroleum products.

As a result, the state-owned Oil Marketing Company, GOIL, has adjusted its prices, with petrol and diesel now retailing at GH¢14.15 per litre and GH¢14.74 per litre, respectively. These adjustments by GOIL took effect on April 4, 2024.

This recent spike in fuel prices represents the highest increase since February 2023, when a litre of fuel sold for GH¢15.40 and GH¢15.50 for diesel.

During an interview on the Citi Breakfast Show (CBS) on Citi FM on Friday, Nana Amoasi VII criticized the suspension, stating that it was implemented without thorough deliberation.

He highlighted that the levy had not achieved its goal of stabilizing fuel prices, citing instances where prices reached GH¢18 per litre in 2022.

Nana Amoasi VII warned of an imminent surge in fuel prices, suggesting that prices could potentially reach around GH¢14.05 per litre, leading to a double increase.

“The suspension of the levy was not well-thought through because it was clear in the statement that it was intended to relieve consumers of intending price hikes which are necessitated by happenings on the world market and also our own forex market. Then the OMCs increase fuel prices in response to the domestic foreign market and the international fuel market. Unfortunately, a day or two, the NPA comes to say we are reversing the suspension of that levy which is meant to cushion consumers and this time around, the NPA fails to give the reasons for the suspension.”

“We have not seen any impact of this levy on fuel prices over the years because it has not been able to stabilise prices and prices shot up as high as GH¢18 per litre somewhere in 2022 and we are seeing the same thing now. What is going to happen is that fuel is going to increase again. Few have done it already and others are yet to do it and prices will roughly rise GH¢14.05 and so fuel prices will soon see a double increase,” stated.