Increase Fuel Prices Now -Economist

A renowned economist and lecturer at the University of Ghana, Prof. Cletus Dordunoo on May 25 waded into the debate on whether fuel prices should be increased to reflect prices on the world market by stating that government?s indecision on the issue could be dangerous for the health of the economy.

Prof. Durdonoo was speaking at the just ended Economic Dialogue. Even as oil prices hit fresh highs on the international market closing above $40 per barrel.

Prof. Durdonoo who was not happy with the subsidies government continued to pay for the importation of crude oil, called on government to as a matter of urgency increase fuel prices to keep them in line with the trends on the world market.

He noted that the macro economic gains chalked by the pursuit of prudent monetary and fiscal policies could be wiped out if government fails to act decisively on the issue. The Professor?s statement comes as a central bank governor, Dr. Paul Acquah laments that the continued increase in crude oil prices remains a source of downside risk to the economy.

The national petroleum tender board which has been mandated to review fuel prices in line with price movements on the internal market has not come out publicly on the issue, but Energy minister, Dr. Paa Kwesi Nduom recently assured Ghanaians that Government is not mulling over possible increases in fuel prices. Currently government is subsidizing fuel to the tune of about 100billion cedis a month in the hope that the global oil price rise would be short-lived.