Energy analyst and Executive Director of the Institute for Energy Policies and Research, Kwadwo Poku, has criticised the government over rising fuel prices, warning that Ghanaians are bearing the full impact of global shocks without adequate relief.
Speaking on JoyNews’ AM Show on Wednesday, 18th March, Mr Poku cautioned that fuel prices could increase further if tensions linked to the Israel–US–Iran conflict persist.
“If the war continues, the next window, it might go higher. I’ve seen that some of the oil marketing companies initially came up with some prices. They’ve reduced it a bit. It’s good for all of us if it is reduced, but it’s just the necessary politics that is playing out.”
He suggested that the current situation reflects a reversal of political roles, with those now in government facing the same economic pressures they once criticised while in opposition.
“Karma is real, as if it’s by God’s intervention to show them that all the things they said in opposition, they face it and see how they treat it,” he said.
“When we had the Russian-Ukraine war, and we had COVID-19, and off the back of that, prices were high. We heard all the things that they claim can be done and should be done. Today, they (NDC) are in power. Why can’t they do the same?”
He questioned why Ghanaians are now experiencing the full impact of international price shocks despite earlier assurances that mitigation mechanisms could be implemented.
“Why is the Ghanaian having to feel the full brunt of what the international shocks are? They talk about bad shock absorbers that were available then. Now, have they provided anything to help the Ghanaian? No.”
Mr Poku explained that one of the key tools previously used to manage fuel price increases, the Price Stabilisation and Recovery Levy, is currently unavailable due to restrictions under Ghana’s agreement with the International Monetary Fund (IMF).
“One of the things that normally you would have used would be the price stabilisation recovery levy, which, unfortunately, the IMF is not allowing us to use because it is seen as part of government revenue, which is very unfortunate.”
According to him, the levy was designed to provide relief by cushioning consumers during periods of high fuel prices.
“Because the whole idea of the price stabilisation recovery levy was to basically zero out, to give some small relief to Ghanaians when prices are high. But due to the IMF interventions, we are not allowed to touch it and zero it out when prices go high. So obviously, that remedy is not available.”
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Source: www.myjoyonline.com