Fuel Hikes In Ghana: Russia – Ukraine Conflict Not The Cause – Prof. John Gatsi
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In as much as many communicators of the ruling New Patriotic Party, NPP, are bent on attributing the high cost of fuel in Ghana to the Russia – Ukraine conflict, an economist, Professor John, Dean of Business at the University of Cape Coast has waded into the controversy.
According to the renowned economist, it is wrong for people to frame it as if the conflict is the ultimate cause of the fuel hikes since before the conflict, prices of fuel were already high.
In a phone interview with Prof John Gatsi on Radio 1 100.7fm, the economist revealed that though the situation in Russia and Ukraine are aggravating the crisis, Ghanaians should not wrongfully confuse themselves that the conflict is the actual cause.
“We are very quick to blame things on some developments. I think the correct framing should be the Russian – Ukraine crisis will further increase fuel prices. Because the Fuel prices have been going up without the Russian -Ukraine crisis. Now that the Russia- Ukraine conflict is having an impact on our petroleum prices, it means one component of pricing on fuel components in Ghana is going up. So the conflict is rather aggravating the fuel crisis” – Prof John Gatsi revealed.
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He added that there are some taxes on the fuel prices that the Government can do something about. either government maintains the taxes and reduces their components or scrap some.
“We need to cut down on the level of taxes. There are different approaches; you can maintain all those taxes but reduce their rates drastically or you can maintain the rates and remove some of them. So government has to look at some of these strategies to ensure that the taxes component is reduced to further reduce fuel prices or household and businesses in this country” – Prof Gatsi added.
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