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Fuel Prices Expected To Go Up Again From Wednesday

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Fuel Prices Expected To Go Up Again From Wednesday

Fuel  prices are expected to shoot up by at least 5 percent from Wednesday, March 16, 2022, the Institute for Energy Security (IES) has projected.

In its projections for the March, 2022 Second Pricing Window, which will take effect from March 16, 2022, to March 31, 2022, the IES said the price of Liquefied Petroleum Gas (LPG) will go up by 3 per cent whereas petrol and diesel would go up by 5 per cent and 9 per cent respectively.

In an interview with the Ghana News Agency, Mr. Fritz Moses, Research Analyst, IES, attributed the projected increment in prices of petroleum products to what he described as the “sharp” rise in fuel prices on the international market and “sharp” depreciation of the Cedi against the US Dollar in the just-ended window.

Currently, fuel is selling at an average of GH¢8.2 per litre at the pumps.

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Before March 1, 2022, petrol and diesel traded at an average GH¢7.50 per litre, representing an increment of 8.6 per cent in the just-ended pricing window.

If the IES’ projections should materialise, then petrol would sell at an average GH¢8.60 per litre while diesel would trade at an average GH¢8.90 per litre by the end of the month.

LPG on the other hand is currently selling at an average of GH¢9.76 per kilogramme, meaning that a 14.5kg cylinder costs GH¢140.

Should prices of LPG go up by 5 per cent as projected, it means that consumers would be required to pay GH¢147 to fill a 14.5kg cylinder.

In the March, 2022 First Pricing Window, the IES found that the Cedi depreciated by 4.82 per cent to close at GH¢7.17 to the Dollar from the earlier window’s rate of GH¢6.85 to $1.

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With respect to the cost of fuel on the international market, the Institute found that the price of the international benchmark Brent Crude rose to 14-year highs within the period under assessment, reaching an average of $112.87 per barrel and representing an increase of 19.95 per cent over the previous window’s average price of $94.10 per barrel.

“As a result of Russia’s invasion of Ukraine, the volatility of oil prices has grown, highlighting the importance of oil and gas to the global economy as well as the risks associated with supply disruptions,” it said.

 

 

 

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Source: GhArticles.com

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Salaries Paid Via MoMo Will Attract E-Levy – GRA Warns

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E-levy: GRA To Refund All Wrongful Deductions To Consumers

The Ghana Revenue Authority (GRA) has indicated that workers who receive their salaries through mobile money platforms will have E-Levy charges on them.

According to a Principal Revenue Officer and Head of the Project Management Unit at GRA, Isaac Kobina Amoako, workers should brace themselves for this, starting May 2022.

“… salaries are paid from their bank accounts onto mobile money platforms, the 1.50% fee will be deducted into the government coffers.”

The incident of the E-Levy charges on salaries paid via MoMo will be on the employer and not the employee.

Mr. Amoako explained that the controversial E-Levy is structured so that tax is factored into all revenue mobilisation streams.

In an interview with Joy News, the GRA official added that the Authority is ready to implement the E-Levy from May 1.

The official further explained that the current framework created by the law as it stands does not distinguish a corporate mobile money account and an individual mobile money account.

For the banks, the disbursements from corporate accounts were not mentioned so it is clear that one is exempt. But in the MoMo, there was no distinction between the corporate MoMo account and the individual MoMo account,” he told JoyNews.

He concluded by saying E-Levy will not be charged on salaries paid through the traditional way, i.e banks.

 

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Source: GhArticles.com

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Cedi Records 18.21% Depreciation To Dollar In Quarter 1; Ranked Among “Worst Spot Returns – Bloomberg

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Cedi and Dollar

The cedi recorded an 18.21% rate of depreciation to the US dollar in the first quarter of 2022, according to Bloomberg.

This still ranked the local currency as the worst among African currencies with the “Worst Spot Returns”. However, for the timely intervention by the Bank of Ghana, the situation could have been worse.

Despite the country benefiting immensely from the high price of crude oil on the international market and to some extent the favorable price of gold, the cedi has not fared well so far this year.

It came under severe pressure, particularly in the months of February 2022 and early March 2022. This was largely as a result of immense demand for the US dollar, as investors seek for dollar denominated assets, due to unfavorable ratings of Ghana’s economic outlook by rating agencies, Fitch and Moody’s.

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Government had also faced stiff opposition in getting some revenue bills, particularly the Electronic Transaction Levy, from getting passed. Similarly, investors wanted some reassurance by government that it was committed to narrowing the fiscal deficit, whilst reducing arrears and the rising debt.

However, the E-Levy has since been passed, whilst the government had introduced fiscal measures to revive the fiscal economy.  Coupled with the timely measures by the Bank of Ghana, this has since slowdown the rate of depreciation of the cedi against the US dollar.

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Meanwhile, the Angolan Kwanza is the best performing currency in Africa this year with an appreciation of 24% to the dollar in the first quarter of 2022.

It is followed by the South African rand with an appreciation of 9.38% to the dollar.

CURRENCIES WITH “WORST SPOT RETURNS” AT THE END OF QUARTER 1, 2022

RANKING CURRENCY YEAR-TO-DATE
16th New Sudanese pound -2.08%
17th Ethiopian Birr -3.89%
18th Liberian dollar -4.94%
19th Sierra Leone leone -5.10%
20th Mauritian rupee -7.05%
21st Zambian kwacha -8.02%
22nd Egypt pound -14.27%
23rd Ghana cedi -18.21%

CURRENCIES WITH “BEST SPOT RETURNS” AT THE END OF QUARTER 1, 2022

RANKING CURRENCY YEAR-TO-DATE
1st Angolan kwanza  24.2%
2nd South African rand  9.38%
3rd Guinean franc  4.40%
4th Botswna pula  2.59%
5th Nigerian naira 1.74%
6th Kenya shilling 1.59%
7th Rwanda franc 0.66%
8th Mozambique new metical 0.19

 

 

 

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New Sachet Water Prices Takes Effect Today

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Women selling sachet water

Sachet water price is expected to increase from today, April 1.

According to the National Association of Sachet and Packaged Water Producers (NASPAWAP), the new price of packaged water is informed by the increasing cost of raw materials and fuel and the cedi’s depreciation.

Barring any hitches, a water sachet will be selling at ¢0.40, while the 500ml bottled water will be retailed at ¢2. From Friday, iced bottled water of 750ml or medium size will be sold at ¢2.50.

A bag of sachet water, 500ml by 30pcs, will be sold at ¢6 maximum from the retail trucks.

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Mini shops, however, will retail the commodity at ¢8 per bag maximum. The 1.5L or large bottled water will be sold at ¢3.50.

President of the Asociation, Magnus Nunoo, has explained that most of the inputs and packaging materials which are mainly imported and produced from petroleum sources have seen price hikes.

“At our previous review, the dollar’s exchange rate was in the region of ¢6.50. Currently, it is inching up to ¢8.50. Fuel which forms a major cost of distributing the products to the market centres, has significantly gone up since our last review,” he noted.

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He, however, cautioned that there might be slight variations in prices across the regions due to haulage to remote and distant areas.

The president further appealed to government to review the tax policies on packaged water industry to help reduce the financial burden to save the industry.

 

 

 

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Source: GhArticles.com

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