OMCs threaten to increase fuel prices if cedi depreciation is not curbed

OMCs threaten to increase fuel prices if cedi depreciation is not curbed

Oil Marketing Companies (OMCs) have warned that the price of fuel could go up further if nothing is done about the continuous fall of the cedi.

According to the OMCs, they will be powerless to stop an increase in prices at the pumps if the local currency does not pick up soon.

We import them and anytime we import something, we have that cedi-dollar relationship and that is it. Although the price was going up but with the cedi coming in, it makes it worse. But we hope it changes because if it keeps going down like this then there will be trouble,” Chief Executive Officer of the Association of Oil Marketing Companies (AOMC), Kwaku Agyeman Duah, told Accra-based Citi FM.

OMCs threaten to increase fuel prices if cedi depreciation is not curbed

OMCs threaten to increase fuel prices if cedi depreciation is not curbed. Source: Citinewsroom.com
Source: UGC

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This comes after the Institute of Energy Security (IES) earlier predicted that the depreciation of the cedi will be a major factor in the increase in fuel prices at the pumps for the first quarter of March.

The cedi has gone past the ¢5 mark after hitting a record low in terms of depreciation.

Currently, the cedi has declined to 5.55 per dollar, which is its weakest level since Bloomberg started keeping the records in 1994.

The country’s economy has also come under scrutiny following complaints by a section of the public on the fast depreciation of the cedi against the US dollar.

Meanwhile, the Finance Minister, Ken Ofori-Atta has assured the public that the cedi will stabilise in the next two weeks.

According to him, government is working on arresting the fast depreciation of the cedi in order to restore confidence in businesses.

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Speaking to journalists outside Parliament on Wednesday, the Minister said large inflows of foreign exchange is expected in the country soon to help overturn the situation.

We have about $300 million coming in from COCOBOD and another $600 million also from COCOBOD in about a month or so. We have officially launched our Eurobond which will be $3 billion and that should close within the next couple of weeks,” Mr. Ofori-Atta said.

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