You can’t blame high fuel prices on Russia-Ukraine conflict – Avedzi to gov’t

Ketu North Member of Parliament, James Klutse Avedzi, has said the government cannot blame the high fuel prices in the country on the ongoing geopolitical tension between Russia and Ukraine.

He indicated that the prices of fuel on the domestic market were already high before the outbreak of the warfare between Russia and Ukraine.

Mr Avedzi told TV3s’s Komla Kluste in an interview that “This government is trying to find an excuse that it is because of the war between Russia and Ukraine that is why the prices of fuel keep increasing.

“But you and I will agree agree that the prices of fuel started increasing not today. In fact this year alone, prices have increased more than three or four times. The Russia-Ukraine crisis barely a week ago so you cannot within one week attribute everting to that crisis.”

Meanwhile, his colleague Member of Parliament for Yapei-Kusawgu, John Jinapor, has asked the Government of Ghana to use the profits made from crude oil sales to cushion Ghanaians during this difficult moment.

The former Deputy Minister of Energy told TV3’s Alfred Ocansey on the Business Focus progemmme that the government has made quite substantial profit from the sale of crude oil.

He said “Based on what is even happening today, because of the geopolitical tension between Russia, the West vis-à-vis Ukraine, you should expect that crude oil prices will not be coming down anytime soon.

“And so, what is Ghana doing? First of all, we are making a huge windfall. If you look at 61 to 100, that represents a 60 per cent jump, in terms of the revenues that we are expecting and so clearly, we are making some very huge windfall which we can use to cushion the ordinary Ghanaian.

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“The other issue is that if you look at taxes on petroleum products the taxes are so huge, not just the number of taxes but the rate at which they have increased them.

“In 2021 we introduced what we call the energy sector recovery levy , policing levy, increased and so all those increments culminated in petroleum prices increment of about 13.6per cent instantly. So far the BOST margin has gone up about 200 per cent fuel margin has gone up about 200 per cent , it is just a plethora of taxes.”

On Monday March 7, the Guardian reported that oil prices have soared more than 10% and are closing in on their all-time high levels after the risk of a US and European ban on Russian crude threatened a stagflationary shock for world markets.

The global benchmark of Brent crude hit US$139.13 a barrel at the start of trading on Monday, a leap of more than $20 on Friday’s close of $118.03.

The all-time of $147.50 was reached in July 2008 but some analysts think that mark could be surpassed because of the geopolitical impact of the Ukraine crisis.

Stock markets headed the opposite way with more big losses when trading began on Monday. The Nikkei in Tokyo was down almost 3%, the Hang Seng was off 3.6% and the Shanghai index had lost 2.3% by 7am GMT. In futures trade, the FTSE100 off 2.6% and the S&P500 down 1.3%.

By Laud Nartey||Ghana