In a few weeks, fuel prices should rise significantly, according to Nana Amoasi VII, the Executive Director of the Institute for Energy Security (IES).

The National Petroleum Authority (NPA) directed the imposition of additional fees in a directive dated April 3, 2024, which was sent to different parties involved in the oil marketing and distribution industry. The fees are 16 pesewas per liter for gasoline, 14 pesewas per liter for diesel, and 14 pesewas for each kilogram of liquefied petroleum gas (LPG).

This came after the NPA decided to halt the petroleum product Price Stabilization and Recovery Levy.

As such, fuel and diesel now retail for GH¢14.15 and GH¢14.74 per liter, respectively, after price adjustments by the state-owned Oil Marketing Company, GOIL. These changes were put into effect by GOIL on April 4, 2024.

The most significant increase in fuel prices since February 2023, when a litre of gasoline sold for GH¢15.40 and GH¢15.50 for diesel, is now being experienced.

Nana Amoasi VII criticized the suspension in a Friday interview on the Citi Breakfast Show (CBS) on Citi FM, claiming that it was not well thought out before being put into effect.

Citing previous instances where prices reached GH¢18 per litre in 2022, he made the point that the levy had failed to stabilize fuel prices.

A double increase in fuel prices is possible, according to Nana Amoasi VII, who issued a warning about an impending spike that could bring prices to approximately GH¢14.05 per liter.

“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,” He concluded.