Principal Research Analyst at the Institute of Energy Security (IES), Mikdad Mohammed, has said Ghanaians should prepare for high fuel prices due to the poor performance of the local currency against the dollar and other major international currencies.
According to him, until the cedi is strengthened against the major trading currencies, especially the dollar, fuel prices will always be high.
He explained in an interview with Katakyie Obeng Mensah, sit-in host of Ghana Yensom on Accra 100.5FM on Thursday, 20 September that, at the moment, more cedis are required for dollars in order to engage in international transactions including oil deals. This situation, he said, is putting pressure on the local currency.
He added that although the cedis’ performance could not be reversed overnight, there are some measures that can be taken in the interim in order to deal with the high fuel prices. One of such measures, he said, was the removal of the Special Petroleum Levy (SPL).
“We should brace ourselves for more fuel hikes because of the weak cedi,” he said.
The price of fuel hit the GHS5-plus mark as of Monday, 17 September 2018, a prediction the IES made earlier.