Fuel Importers And Bank of Ghana Reach Deal For GH¢1 Fuel Price Reduction

Fuel Importers And Bank of Ghana Reach Deal For GH¢1 Fuel Price Reduction

  • Fuel prices are set to reduce further by up to GH¢1 per litre after importers of the product hold successful meetings with the Bank of Ghana
  • The meetings, according to the CEO of CBOD, Senyo Hosi, successfully dealt with forex challenges
  • The GH¢1 per litre forecast by April 1 follows a temporary removal of 15 pesewas in taxes charged on the refined products

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Bulk importers of fuel products and other stakeholders in the sector have held a series of meetings with the Bank of Ghana to further bring down the commodity's price by GH¢1 per litre.

The latest move to reduce the cost of fuel follows a move by the government last week to mitigate the increasing cost of fuel by cutting 15 pesewas in taxes from a litre of the commodity from April 1, 2022.

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Senyo Hosi fuel pump and cedis
CBOD CEO, Senyo Hosi (R) is confident fuel prices will come down. Source: Instagram/@fillaboyzdotcom
Source: Instagram

Finance Minister Ken Ofori-Atta announced this when he briefed the press about measures to mitigate the economic challenges.

A report by Joy News on Monday, March 28, 2022, indicated that the Ghana Chamber of Bulk Oil Distributors (COBD) has said the GH¢1 per litre reduction has been made possible after negotiation with the central bank dealt with exchange challenges.

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CEO of CBOD is quoted as making the following statement: "we will be looking at something close to a cedi under litre or half a cedi under a litre."

Last week, the CBOD boss revealed that ongoing talks with the central bank on reducing recurrent fuel prices have resulted in the release of $160 million to the entire energy sector.

He also disclosed that the ongoing discussions aim to formulate an airtight and sustainable strategy on how to beat the effects of the cedi depreciation on the deregulated pricing of petroleum products.

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Respite for Ghanaians as government reduces fuel price by 15p per litre

Record increases in the price of crude on the global market due to the Russian-Ukraine war and Ghana's depreciating cedi and the many taxes on fuel has driven up the price sharply in the country.

The price of petrol and diesel currently is averaging around GH¢10 per litre, up a significant GH¢2 jump in price at the last pricing window two weeks prior.

Meanwhile, the government has said it is firmly committed to scraping some of the taxes on petroleum products that experts have described differently as a "nuisance," many reports have said.

Currently, Ghanaians pay almost 80 pesewas (approximately GH¢1) as tax on a litre of fuel.

Last week, the finance minister was heavily criticised when he announced the removal of the 15 pesewas of taxes. Many felt it was insignificant.

Ghanaians Express Discontent With 15p Reduction In Prices Of Petroleum Products

Hundreds of Ghanaians have been expressing their discontent on social media since the government announced a 15 pesewas reduction in the price of petroleum products.

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TUC calls for suspension of taxes on all fuel products after massive increases since January

Finance Minister Ken Ofori-Atta, yesterday, March 24, 2022, announced a series of measures to mitigate the economic hardships during a press briefing.

To tackle the increasing fuel cost, the Minster announced 15 pesewas cut in taxes on a litre of petroleum products from April 1, 2022.

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