Crude oil prices surged on Monday January 9, after China, one of the world’s largest economies opened its borders.
With China being one of the largest importers of crude oil, the re-opening of their borders led to an increase in demand which pushed the prices of the crude oil from US$74.67 to US$79.47 per barrel.
With Ghana being both an exporter of crude oil and importer of finished petroleum products, this is expected to have a double effect on the economy.
The rise in the prices of the commodity is good news for the government as this will help boost government revenue.
On the other hand, the rise, coupled with the recent depreciation of the cedi is also expected to lead to increased prices of finished petroleum products at the pumps which would put pressure on consumers.
Latest figures from the Bank of Ghana indicates that the dollar is currently selling at GH¢9,002 per dollar as at Friday January 6.
Fuel is currently selling at GH¢12.40 per litre while diesel is selling for GH¢14.60