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Cedi depreciation to blame for surge in fuel prices – COPEC

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The Chamber of Petroleum Consumers (COPEC) has cautioned that fuel prices will continue to surge in the coming weeks if the depreciation of the cedi against the dollar is not addressed.

The Chamber blamed the recent marginal increments in fuel prices on the depreciation of the local currency and predicted that fuel prices were likely to go up again at the pumps by the end of the week.

In an interview with the Ghana News Agency, Mr Duncan Amoah, Executive Secretary, COPEC, called for urgent action to halt a further depreciation of the cedi to stabilise prices at the pumps.

“If the cedi is still not showing strength and still depreciating, there is a greater tendency that you will pay more for fuel at the pumps…it is likely prices will go up again,” Mr Amoah said.

After months of stabilised prices at the pumps, prices of petro, diesel and liquefied petroleum gas (LPG) went up marginally for two consecutive pricing windows, from February 1, 2024.

In the February 2024 Second Pricing Window, fuel price went up at an average of GHS0.45 per litre for petrol and GHS0.30 per litre for diesel. LPG increased by GHS0.65 per kilogram.

Prices went up again in the March 2024 First Pricing Window. Currently, petrol is selling at an average GHS 13.49 per litre and GHS14.49 for diesel.

The Institute of Energy Security (IES) attributed the increment in prices to the depreciation of the cedi against the dollar.

In its evaluation of the February 2024 Second Pricing Window, the IES Economic Desk found that the Ghana cedi depreciated by 1.44 per cent to a U.S. Dollar, trading at GHS 12.60 to the dollar.

“Barring any intervention, in the coming days, consumers should expect further marginal increases in the price of Gasoil, Gasoline and LPG, this is largely due to the worsened Ghana Cedi,” the IES said.

COPEC said the Government’s gold for oil programme was not sustainable intervention to address the forex factor that contributed to increment in fuel prices.

Mr Amoah said the policy only covered about 20 per cent of total consumption and that meant that larger percentage of the market relied on dollars to import petroleum products into the country.

He said using the country’s gold reserves to cushion the cedi from depreciating would have been a more sustainable option than exchanging the gold with petroleum products on the international market.

The Government announced the Gold for Oil Policy in November 2022 as an innovative measure to exchange gold for petroleum products instead of US Dollars.

The Government said the move was intended to reduce the demand for dollars for the importation of petroleum products and by extension reduce the rate of depreciation of the Cedi.

It is estimated that the country required about $400m to import petroleum products monthly – out of which the Bank of Ghana is able to supply only $120m to petroleum importers.

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National

The Mobile Network Operators are still relying on cables that weren’t impacted by the disruption – NCA

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All the Mobile Network Operators (MNOs) that have restored 100% internet capacity, are still relying on the cables that were not impacted by the disruptions, the National Communications Authority (NCA), has said.

The NCA says the four subsea cable landing service providers – ACE, MainOne, SAT-3 and WACS, that were hit, are still down.

Addressing the press on Sunday, March 24, the Director General of the NCA, Mr Joe Anokye said ” AitrelTigo has been a 100% capacity since the recent  incident, Telecel has been at 100 % capacity as of Tuesday 19th March 2024, and MTN has recovered  100 % capacity for peak  time traffic as of Thursday  21st March  2024,”

“They are all riding on the sub-cable or the cable providers in the West Coast that were not impacted by the outage, that is what is happening,” he said.

The Authority earlier held a face-to-face meeting with all four (4) subsea cable landing service providers and the three mobile network operators (AT, MTN and Telecel).

The meeting was attended by the top management of the above providers and operators to receive updates and to discuss the way forward.

The NCA said the Mobile Network Operators (MNOs) and subsea cable landing service providers continue to work with their international partners in the sub-region to progressively add more capacity for data services as it becomes available.

“The subsea cable landing service providers have remotely identified the approximate locations of the damage and have made preparations to dispatch repair vessels to the location for physical assessment and restoration.

“Based on the above, the subsea cable landing service providers have indicated an estimated time frame of a minimum of five (5) weeks for full service restoration from the time the vessels are dispatched to the various locations.

“The NCA recognizes the impact the disruptions have had on economic, academic and social activities and assures the public of its commitment to continue collaborating with relevant stakeholders. We expect some improvement in data services in the coming days while the operators work around the clock to restore full connectivity.

“The NCA encourages MNOs, Internet Service Providers, and all other providers to actively participate in the operations of the Ghana Internet Exchange (GIX) in order to ensure an efficient local content delivery and a seamless Internet traffic exchange locally.”

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National

We’re working to make Ghana ICT hub of West Africa

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Minister of Communications and Digitisation, Ursula Owusu-Ekuful, says the government is building the pillars to make Ghana the Information and Communications Technology (ICT) Hub for West Africa.

“We have implemented some fundamental digital initiatives to serve as the building blocks on which to propel sustainable growth in the digital economy we are building.”

“Initiatives such as the Mobile Money Interoperability platform, the Paperless Port system, National Identity Register, and Digital Property Addressing system have brought relief to our citizens and have propel the country’s digital agenda,” she said.

The Minister made these remarks during the opening of the 12th Information and Communications Technology for Development (ICT4D) event in Accra.

The global event organised by the Catholic Relief Services (CRS) and being hosted in Ghana for the second time, brought together over 600 experts in the ICT space to deliberate on ways to harness digitisation and technology for development.

Mrs Owusu-Ekuful said Ghana had joined the 4th Industrial Revolution to ensure that the country took advantage of the opportunities it offered to transform the economy and provide a firm foundation for growth.

She stressed that digitisation was necessary for development in the 21st century, saying, there cannot be development without the pursuit of digitisation in these times.

“We commenced our digital journey in 2017 with the Digital Ghana Agenda, a vision to leverage technology to deliver public services, promote transparency, efficiency, and easy access to all citizens irrespective of location,” she said.

Mr Daniel Mumuni, Country Representative of the CRS, commended the Government for its digitisation agenda to improve accessibility and productivity.

He said the Conference would explore how ICT and data innovations were making a measurable difference in millions of peoples’ lives and increasing the impact of humanitarian relief, development, and conservation programmes.

“We hope to also advance global knowledge exchange and build capacity on digital development to drive more impactful use of technology for good.”

“We are excited to be hosting this conference in Accra where over 700 people have gathered from different countries to the country,” he added.

Founded in 2010, the ICT4D Conference has grown each year to become an internationally recognized high-profile platform for NGOs, community-based organizations, private sector companies, governmental and multi-lateral agencies, investors, donors, academic and research institutions to exchange experiences in using digital technologies and learn from each other.

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Agriculture

COCOBOD must support young Ghanaians pursuing cocoa farming – SEND Ghana

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The declining labour force is a serious threat to Ghana’s cocoa industry, which was once the pride and foundation of the country’s economy.

The youth no longer find cocoa growing as appealing, despite its historical significance. There are several intricate challenges that need to be addressed immediately.

Results of SEND Ghana’s research on gender responsiveness Ghana has illuminated this matter, exposing a depressing lack of enthusiasm for cocoa growing among the younger generation.

An important hurdle that keeps young farmers from entering this important sector of the economy is the use of traditional farming methods, which are ingrained in generational norms as well as inadequate inputs.

The Senior Programme Manager for SEND Ghana, Harriet Nuamah Agyemang highlights how urgently the cocoa business needs to innovate and modernise in order to give young farmers access to modern farming methods and technologies.

She added that “Farming itself is not attractive to young people these days because we are still using our local implements. Farming is still rudimentary for most people and people don’t want to exert so much energy these days into farming.”

Mrs Agyemang further explained that “Young people think that whatever is due them should be paid and then they would go and procure their inputs for their farms, rather than being given inputs that are inadequate but at the end of the day, the cost of those inputs are being deducted from the money they are given for their beans.”

Amidst these urgent worries, groups such as SEND Ghana are raising the alarm and pressuring decision-makers and business stakeholders to tackle the fundamental problems confronting the cocoa industry.

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