A former Energy Minister Boakye Agyarko has denied cancelling Ghana rsquo;s Emergency Power Agreement with GCGP Limited which has led to a looming $134 million judgement debt slapped on the country.
The Institute for Energy Security (IES) has bemoaned the impact of a judgement debt that has been slapped on the government by the International Court of Arbitration.
Ghana has been hit with a US$134 million judgement debt over the cancellation of its Emergency Power Agreement with GCGP Limited.
The contract, signed in 2015, was among those cancelled by former Energy Minister, Boakye Agyarko with the reason that they were not needed and were only going to further lead to the ballooning of Ghanaâs debts in the energy sector.
The International Court of Arbitration in its ruling on the contract cancellation also said the judgement debt comes with a US$30 million interest payment obligation.
By Eric Nana Yaw Kwafo LISTEN
FEB 8, 2021
The Institute for Energy Security (IES) has noted that there would have been an increase in the price of domestic gasoline if not for the global Coronavirus (Covid-19) pandemic.
According to the organization that focuses on the nexus between energy demand and energy supply, Ghana in the past decade witnessed a 347 percent increase in the price of Gasoline (Petrol) and a 338 percent increase in Gasoil (Diesel) price at the pump.
While they attribute the yearly increase in the prices of petrol and diesel to cedi depreciation and taxes, the same was expected to happen last year.
Prices of petrol and diesel shot up 347 percent and 338 percent respectively between 2010 and 2019, due to the cedi’s persistent depreciation, taxes and levies, according to a new study by the Institute for Energy Security (IES).
In 2010 the average pump price of petrol stood at GH¢1.16 per litre (GH¢5.22 a gallon), but in 2019 the average price was GH¢5.18 per litre (GH¢23.31 a gallon). Likewise, the average pump price of diesel moved from GH¢1.18 per litre (GH¢5.31 a gallon) in 2010 to GH¢5.17 per litre (GH¢23.27 a gallon) in 2019.
The analysis was carried out using data from the Energy Commission (EC), National Petroleum Authority (NPA) and IES MarketScan data, and revealed that by the end of 2019 domestic consumers of these products were paying more than four times the amount they parted with for a litre of fuel in 2010.
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