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Head of Research at the Chamber of Petroleum Consumers Ghana (COPEC-Gh), Benjamin Nsiah, says the claims that fuel prices have increased due to the Russian-Ukraine war and the Covid-19 pandemic are false.

Speaking on Frontline on Rainbow Radio 87.5Fm, he categorically stated that it is not true that the war has caused fuel prices to go up.

He explained that the global prices at the peak of the pandemic drastically reduced and hence cannot be the reason for the increase. He was speaking to host Kwabena Agyapong.

According to him, even during the period when the price at the global level was low, the exchange rate dealt Ghana a big blow.

He said the exchange rate is one of the major threats to pricing in the petroleum sector in Ghana.

He said the importation of oil represents a significant fraction of the trade balance for the country since we are an energy-dependent economy.

Also, a country such as Ghana with floating exchange rates will certainly have to deal with an impact on the value of its currency due to the variability in oil prices.

He explained that because oil contracts are denominated in US dollars, changes in the price of oil will always have implications for the demand and supply of foreign exchange.

He further asserted that Ghana had lost it on the policies we have implemented in the sector.

”We don’t have a policy option. We lack direction, our policy is stagnant, and we don’t have alternatives. That is what is causing our troubles. We only buy from Europe without other alternatives, and because of the sanctions on Russia, we are facing problems.”

He suggested that Ghana will have cheaper prices if we extend our options instead of depending only on Europe.

”The war is not the reason why our cedi is depreciating. Internal factors are causing the cedi to depreciate. We have to address these challenges and stop blaming others for our problems,” he added.