Research Analyst with the Institute of Energy Security, Fritz Moses, has attributed mismanagement of the economy in the second half of the year to the hike in the price of fuel.
Speaking to UniversNews, Fritz Moses explained that if the government had put in place efficient measures to manage the economy, we would not have experienced the constant depreciation of the cedis against the US dollar. And fuel prices may not have hiked in the local market.
“If there had been some prudent economic management principles that were guiding our economy, in the second half of this year there would have been a stronger and more robust cedi exchange rate against the US dollar. If that had happened perhaps it would have also helped stabilize the prices a bit. But the consistent fall in the cedi rate against the US dollar has also caused the consistent rise in price in the local market.”
He added that government should focus on developing local refinery capacity as a long-term plan to stabilize the price of fuel in the country.
According to him, the establishment of a robust local refinery will internally generate revenue that would have otherwise gone to the country we import fuel products from.
“We should look at a more sustainable plan, where we will develop our local refinery capacity. Also one of the causes of the price increase is the charges the bulk distributor companies are faced with when they have to bring products from the international market. They get to pay for trade, offloading of the cargoes, the pipeline that they use, and of cause, they factor all of that in the ex-refinery price that they sell to the OMCs. If we are to have our own refinery in Ghana, we will tax all of that cost. At the end of the day, it will be an internally generated resource.”