The Institute of Energy Security (IES) is predicting a further increase in fuel prices in the first pricing window of March due to the constant depreciation of the cedi.
The IES says the depreciation of the cedi is already threatening the stability of fuel prices.
The Institute also believes the cedi played a part in the increment of the second pricing window for February.
In that month, prices of fuel across various fuel pumps went up again in the second pricing window.
The increases were between 3.7% and 4.9%.
Speaking to Citi Business News, Principal Research Analyst at IES, Richmond Rockson said government must take urgent steps to deal with the cedi’s woes.
“The last indicator that we will see is the cedi dollar ratio. Unfortunately, the cedi hasn’t been strong enough. The cedi has depreciated significantly during the period. As at the last window, the rate was about 3 cedis 38 pesewas. As at now, the rate is hovering around 4.6,4.7 to the dollar which is not a good sign.” he stated.
“Once the cedi is depreciating, all others get affected. That is why we strongly believe the cedi is threatening the prices of fuel on the local market.”
Mr. Rockson explained that the indicators are clear that the first pricing window in March will see an increase in fuel prices.
“We are very certain that prices are likely to go up within the first pricing window in March.”
He, however, called on government to ensure the situation is kept under control.
“We believe government must address it and take measures to halt it else it is going to affect the industry a lot.”