
Regularise permits or face demolition within 2 months - AWMA to property owners
3 mins read
10th October 2022 8:14:48 AM
2 mins readBy: Chris Kodo
Due to the rise in oil costs, the administration of then-General Ignatius Kutu (I.K) Acheampong was forced to outlaw the use of gasoline by private vehicles on the weekends, which put an end to Accra's typically bustling weekends.
On October 22, 1975, the prohibition was in effect from Friday at 6 p.m. through Sunday at 6 p.m.
The purpose of the prohibition on gasoline usage by private automobiles on weekends was to promote fuel conservation in light of the recent 10% increase in oil prices announced by the Organization of Petroleum Exporting Countries (O.P.E.C.).
This was also a way for I.K. Acheampong's government to cut down on petrol consumption which would assist Ghana's balance of payments.
The government in a statement explaining why the ban had been imposed said: "it was not going to pass on the total price increase, estimated at between five and six million pounds sterling."
Effects of an increment in oil products
An increment in oil or petroleum products usually affects inflation and reduces economic growth. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products. It also affects costs such as transportation and manufacturing.
The increase in these costs in turn affects the prices of a variety of goods and services, as producers may pass production costs on to consumers. The extent to which oil price increases lead to consumption price increases depends on how important oil is for the production of a given type of good or service.
Oil price increases can also stifle the growth of the economy through their effect on the supply and demand for goods other than oil. Increases in oil prices can depress the supply of other goods because they increase the costs of producing them.
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