The sale of petrol to private vehicles was formerly prohibited on weekends due to a fuel scarcity in Ghana.
The restriction was in place starting at 6 p.m. on Fridays and ending at 6 p.m. on Sundays as of October 22, 1975.
After the price of the commodity climbed, this was an effort to slightly reduce gasoline usage….CONTINUE READING
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The vibrant streets of Accra on weekends became a thing of the past when General Ignatius Kutu (I.K) Acheampong’s government, in response to soaring oil prices, imposed a ban on the use of petrol by private vehicles during weekends.
This restriction, which took effect on October 22, 1975, applied from 6.00 pm on Fridays to 6.00 pm on Sundays.
The primary motive behind this petrol ban was the need to conserve fuel, a necessity prompted by a recent 10 percent hike in oil prices announced by the Organisation of Petroleum Exporting Countries (O.P.E.C.). Additionally, I.K. Acheampong’s government sought to curtail petrol consumption to alleviate Ghana’s balance of payments.
In a government statement clarifying the reasons for the ban, it was mentioned that the government would not pass on the full price increase, which was estimated to be between five and six million pounds sterling.
Effects of a rise in oil prices
An escalation in oil or petroleum product prices typically has repercussions on inflation and economic growth. Concerning inflation, oil price increases directly impact the costs of goods manufactured using petroleum products. This, in turn, affects expenses such as transportation and manufacturing.
The uptick in these expenditures can influence the prices of various goods and services since producers may transfer production costs to consumers. The extent to which oil price hikes trigger consumer price increases depends on the significance of oil in the production of specific goods or services.
Moreover, increases in oil prices can hamper economic growth by affecting the supply and demand for items beyond oil. Such price hikes can undermine the supply of other goods because they elevate the expenses associated with their production….CONTINUE READING