COPEC Urges Prioritizing Cedi Stability Amid Fuel Price Concerns

Ghana's COPEC calls for strengthening the cedi to manage rising fuel prices, as the CBOD assures stability and plans to train journalists on fuel pricing.

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Quadri Adejumo
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COPEC Urges Prioritizing Cedi Stability Amid Fuel Price Concerns

COPEC Urges Prioritizing Cedi Stability Amid Fuel Price Concerns

The Chamber of Petroleum Consumers (COPEC) has called for prioritizing the strengthening of Ghana's cedi currency as fuel prices continue to rise. The appeal comes amid speculation that fuel prices could reach ₵18 per litre if the dollar hits ₵15, a scenario the Ghana Chamber of Bulk Oil Distributors (CBOD) considers improbable given the cedi's recent stability.

Dr. Patrick Kwaku Ofori, CEO of CBOD, explained that the exchange rate has remained stable over the past week, which will have little impact on the prices of petrol, diesel, and Liquified Petroleum Gas (LPG). He urged the public and energy experts to refrain from speculating, as it could lead to consumer panic and affect price volatility at the pumps.

To address the issue of misinformation, CBOD plans to organize a training course for journalists on fuel pricing and market dynamics. Meanwhile, the Concerned Drivers Association of Ghana and the Transport Operators Union of Ghana have increased their fares due to the rise in fuel prices and other economic conditions. However, the Ghana Private Road and Transport Union has not approved any new fares and has urged drivers not to implement increases.

Why this matters: The stability of the Ghanaian cedi is vital for managing fuel prices and preventing further economic strain on consumers. Addressing speculation and misinformation surrounding fuel prices is essential to maintain public trust and prevent unnecessary panic.

According to Finance Minister Dr. Mohammed Amin Adam, the Ghanaian cedi has stabilized strongly against major trading currencies since January 2024 due to prudent measures by the Bank of Ghana (BoG) and the Finance Ministry. The cedi depreciated by only 8.3% within the first three and a half months of 2024, compared to 21.5% in the same period in 2023. This improvement is attributed to strong monetary policies by the BoG, the building of Ghana's international reserves, and fiscal control measures by the Finance Ministry.

The government expects to end this year with a surplus of 0.5% of GDP and a 1.5% surplus in 2025. The public debt trajectory has also improved, with the debt-to-GDP ratio reducing from 73.5% at the end of 2022 to 71.4% by the end of 2023. As Ghana continues to navigate the challenges posed by fuel price fluctuations and economic pressures, prioritizing the stability of the cedi remains a key focus for policymakers and stakeholders in the energy sector.

Key Takeaways

  • COPEC calls for strengthening Ghana's cedi to manage rising fuel prices.
  • CBOD says fuel prices unlikely to reach ₵18/liter due to cedi stability.
  • CBOD plans to train journalists on fuel pricing to address misinformation.
  • Ghana's cedi has stabilized strongly against major currencies in 2024.
  • Prioritizing cedi stability remains a key focus for policymakers and stakeholders.