He said the increments are due to the turmoil in the petroleum sector on the international market.
Speaking at the National Energy Transition Dialogue in Accra, Dr. Bawumia said the global movement to cut back on fossil fuel in a bid to meet the net-zero emission level is already taking a toll on the global economy as funding for oil exploration and exploitation shrinks.
“We all have to be aware that this transition is going to take place over the next 30 years, but the costs of that transition are being felt today. There is less and less funding available for oil exploration and exploitation, and we are seeing this in an increase in oil prices globally. We in the developing countries are facing these very high costs of petroleum prices, and that is resulting in many economic impacts such as inflation as prices of goods increase in response to the increase in petroleum prices.”
He further stated that “There are many who have said that the petroleum price increase is going to remain at the high levels; we are not going to see any major declines. How do we as developing countries like Ghana adjust to this new reality, if it becomes a new normal of high oil prices and its impact on the macro variables in our respective economies?”
Dr. Bawumia used the platform to underscore the need for transition but was quick to point out the huge price developing economies like Ghana have to pay for that to happen saying.
The increase in petroleum prices has led to an announcement of increase in transport fares from February 26.
The increment will affect shared taxis, intra-city popularly known as ‘trotro’ and intercity transport.
The drivers say the hike has been necessitated by the increase in the price of fuel and the economic hardship the country is facing, which has affected their work.