Weak cedi limiting bigger fuel price reductions despite government intervention – IES
The Institute for Energy Security (IES) says the recent depreciation of the Ghana cedi is preventing consumers from enjoying larger reductions in fuel prices, despite the government's intervention to cushion the impact of rising global oil prices.
The weak Ghana cedi is limiting the extent of fuel price reductions, despite the government's intervention, according to the Institute for Energy Security (IES). Senior analyst Derek Emmanuel Xatse explained that exchange rate movements significantly influence petroleum prices in Ghana, alongside international crude oil market developments.
Xatse pointed out that a stronger cedi would have resulted in lower pump prices and that the recent GH¢2 per litre diesel subsidy provides relief, but the weakening cedi offsets some of the benefits. He emphasized the need for the government to focus on stabilising the local currency to protect consumers from recurring fuel price shocks, as part of a long-term strategy.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
