Fuel has been a driving force in the agriculture since agriculture is one of the most energy-consumptive sectors. Fuel prices have been surging for a period of time in this country. It has increased three times this year and it is at a current price of 7.99 Ghana cedis per liter. It is believed that the increase in prices could be attributed to the rising of crude oil prices on the international market and also the re-introduction of the price stabilization and recovery levy on fuel prices which were suspended last year.
As the fuel prices increases,it leads to lower agricultural output, rise prices of agricultural products and reduce farm income regardless. Huge amounts of fuel are used as energy in the manufacturing of fertilizers and pesticides for the production of agricultural products. Fuels are needed to facilitate the agricultural industry, from planting, irrigation, harvesting through to processing, packaging and distribution. It is also needed to operate farm machinery, processing facilities, storage and the transportation of the products.
At a function held on the Friday, February 18 in acre, the finance minister, Ken Ofori Atta stated that the government will turn to the petroleum sector for revenue if Ghanaians reject the E-levy. It is therefore believed that fuel prices could go higher. This may cause agricultural businesses to spend less on production since prices of raw materials will go up. Decrease in production will lead to less sales which can also cause unemployment.
ARTICLE BY: WENDY ELORM AMANKWA.