General News of 2014-03-02

NPA blames petroleum price increases on depreciating cedi

The decline in the local currency cedi appears to be having a serious effect on the economy.

The National Petroleum Authority (NPA) yesterday increased prices of petroleum products between 3 and 6 per cent.

However, unlike previous hikes where the price of the crude on the international market was the benchmark for adjustments, the recent hikes have been blamed on the falling cedi.

Public Relations Officer at the NPA, Yaro Kasambatah, told Joy News the authority was forced to pass on the cost to consumers, due to the reduction in the value of the cedi.

According to him, "When you look at the crude oil price as we do, we always have to come back and look at the product prices because actually all our importers go out to buy refined products so the crude is a necessary benchmark though but the fact in chief is the price of the refined product itself."

Yaro Kasambatah explained that, "The cedi depreciation effect over the period under review also contributed to why you have the effect you have."

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