Richmond Rockson, Head of Communications at the Ministry of Energy and Green Transition, has stated that the Mahama administration has effectively managed domestic factors impacting fuel prices. He emphasized that the main factor within the government's control is the exchange rate, which has been managed well to control fuel prices. Rockson urged the New Patriotic Party (NPP) to acknowledge the Mahama administration's prudent management of the exchange rate.
Currently, fuel prices are sold between 16 and 17 cedis per litre at some pumps. Rockson made these comments during an interview on TV3's Big Issue. He highlighted that if the government were using the exchange rate left by the NPP administration, fuel prices would be significantly higher. According to him, the data shows that fuel prices should be around 28 to 30 cedis per litre if using the NPP's exchange rate.
Rockson criticized the NPP for their economic management during their tenure. He mentioned that the NPP engaged in reckless borrowing and expenditure, which led to the economy being on life support even before the COVID-19 pandemic and the Russia-Ukraine war. The World Bank and IMF had warned the NPP government about the dangers of their economic policies.
When the Mahama administration took over, the exchange rate was around 17 cedis; it has since decreased to around 11 cedis. Rockson argued that this significant reduction in the exchange rate has helped mitigate the impact of increased international fuel prices. He also noted that international crude oil prices have increased from 65-75 dollars to around 100 dollars, and finished products have seen a significant increase of over 110 percent.
Despite these global challenges, Rockson stated that the fuel prices in Ghana have not reflected these increases. He attributed this to the government's effective management of the economy. Rockson urged the NPP to commend the Mahama administration for their efforts in managing the economy, particularly with regards to the exchange rate.
The NPP has been criticized for their handling of the economy, with many Ghanaians expressing concerns about the high fuel prices and its impact on the cost of living. Rockson's comments are likely to spark further debate about the economy and fuel prices in Ghana. The government has been working to address these concerns and stabilize fuel prices.
The Ministry of Energy and Green Transition will continue to monitor the situation and work to ensure that fuel prices remain stable. The government's efforts to manage the economy and mitigate the impact of global events on fuel prices will be closely watched by Ghanaians.
Key points
- Fuel prices in Ghana would be above GHC28 if using the exchange rate left by the NPP government.
