Former Board Chairman of the Association of Oil Marketing Companies, Henry Akwaboah says the government must address the erratic increase in the price of fuel in the country to prevent further escalation of the situation.

Prices at the pumps are almost GHS8 at many fuel stations in the country after starting the year at about GHS6.5 per litre.

This is a reflection of the spike in prices on the global market.

The price of crude oil has also increased by about 25 percent since January although it started off at about 75 dollars per barrel.

Locally, these increases have compelled some transport unions to threaten to increase transport fares by some 30 percent, a move they have justified as the only way they can stay afloat amid the fuel price hikes.

Beyond the price movements on the world market, Henry Akwaboah explained the other factors accounting for the current prices on the markets and what can be done to salvage the situation.

“There are three key players or three key factors– world market price, rate of exchange and then the taxes, levies and all that.”

He further highlighted which of these pointers could be manipulated to help check the situation.

“Let’s look at which of these factors are controllable. World market price, there is absolutely nothing we can do about it. When it comes to cost recovery, no one will import fuel into the country and decide to sell it below the cost price. Definitely, they have to fully recover their cost.”

“Then let’s come to the taxes, it comes back to the same issue I’ve been championing over the years, that there are still leakages in the system. We are not efficient at collecting the taxes.”

Mr Akwaboah however stressed that the onus lay on the government to do all it can to check the development so as to preserve the economy from its harsh impact.

“It’s a very difficult situation. I think the government needs to at this stage, bring the situation under control.”