Oil Price Affects Everything In Ghana

Ghana is fifty four years of Independence from British rule but, nothing to be boldly proud of as a great well a economy country .
Ghana is a peace of peace , hospitality and trustworthiness but people living here turn the good name of the country to something else.
Oil one of Ghana's problem since the time memorial and we try to fight it but there is no leader to stand on his leadership qualities to solve it .
Today's Modern Ghana, the increase of fuel price affect every single thing in the country no subsidizer for the nation relies on.
Better-than-expected survey data from the US, China, India and some eurozone states boosted hopes for a global recovery and increased oil demand.
But a recent Iranian missile test and new US and EU sanctions have also led to concerns about oil supply.
In the US, a recent run of positive economic data continued on Tuesday when the Institute for Supply Management said its index of national factory activity had risen to a better-than-expected 53.9 in December from 52.7 the month before.

Any figure above 50 indicates growth in the sector.
It echoed recent stronger-than-expected manufacturing data from China and India.

Figures from the UK also showed a smaller-than-expected decline in the manufacturing sector in December, thanks to new orders from Germany, China and eastern Europe.
The Markit/CPS purchasing managers' index for the UK rose to 49.6 from November's figure of 47.7.

"People are being cautiously optimistic about where they think things could go over the next nine months," 
"If growth is higher than expected, than suddenly we could be back to a situation like 2008 where people are querying whether or not there is supply capacity," he added.
Iran fears

But analysts say the sharp rise in the price of oil is about more than just economic optimism.
Concerns over Iran's nuclear programme have led to new EU and US sanctions on some Iranian oil exports.

Iran is the world's fourth largest oil producer and claims to have control over the strategically significant Strait of Hormuz through which about 15% of the world's oil exports pass. it carried out a missile test in the region and it has warned the US not place ships in the Gulf.

"If you look at other commodity prices; industrial metals for instance, the intra-day movement up in oil has been stronger [than them] and part of that strength has definitely come from Iran "

"The general rhetoric around Iran is what has supported the oil price over the last month or so."
However increases in the cost of oil may in turn damage the global economy - limiting price rises.
"Whenever prices are going too high you can clearly see US demand starts falling - there is a limit to how much price can go up," given the weak economy,

The National Petroleum Authority (NPA) has announced that prices of petroleum products will go up between 15 and 20 percent effective December 29.

Below is the full statement from the authority:

In January 2011, the NPA announced Petroleum Products Pump Prices based on prevailing International Crude Oil and Petroleum prices at the time - Crude Oil price (Brent Crude) was at USD92/barrel, and the Exchange Rate was at GHS1. 4629 per USD1. 00.

The average per barrel price of Crude oil for 2011 is USD111 with Current Prices at USD110, which is approximately a 20% increase since the last Petroleum Products Pump Price review when Crude Oil Prices were at USD92/barrel.

Also, the current exchange rate is at GHS1. 5464/USD which implies the Cedi has depreciated by about 5. 7% since Jan 4th, 2011.

The Culminating effect of a) International Crude price movement and b) depreciation of the Cedi implies an over 25% increase (in Ghana Cedi terms) in the cost of procuring crude oil and petroleum products since Jan 4th, 2011.

By the end of 2011, Govt of Ghana would spend over GHS450 million in subsidies for the 2011 year.
The current situation is as follows: Crude Oil Prices are currently at USD110/barrel and the Exchange rate is GHS 1. 5464/USD
Petrol GHp 175. 48 per litre Diesel GHp 177. 09 per litre Kerosene GHp 91. 00 per litre LPG GHp 136. 19 per kg
(A 12. 5kg Cylinder will now sell at GHS17. 02, and a 14. 5kg cylinder will sell at GHS19. 75)
Premix GHp 54. 27 per litre RFO GHp 83. 93 per liter
Petrol - 15% Diesel - 15% Kerosene - 0% LPG - 30% Premix - 0% RFO - 0%

The NPA will be monitoring the International Prices and intends not to decrease or increase Petroleum Products Pump Prices if the average prices of Crude Oil consistently remains within the USD107/bbl to USD111/bbl range.

The NPA will continue with its bi-weekly review of the International Prices to ensure that the Suppliers of Petroleum Products are paid the full cost recovery price using Import Parity.

         Ghana need a good reliable source to put  hopes on which from this modern Ghana all new ways to lift up the country as a nation .