The Chamber of Petroleum Consumers (COPEC) has projected that petrol will rise by 5.21% to an average of GH¢17.78 per litre, while diesel is expected to increase by 22.91% to GH¢22.42 per litre. Liquefied Petroleum Gas (LPG) is also expected to sell at GH¢15.68 per kilogramme during the first pricing window of October. These projected increases are largely attributed to a significant rise in international crude oil prices and a marginal depreciation of the cedi against the US dollar.
According to COPEC, global crude prices increased from $103.07 to $124 per barrel, while the cedi depreciated from an average interbank rate of GH¢11.4830 to GH¢11.6211 to the US dollar during the current pricing window. This development is expected to affect fuel prices at the pumps, with petrol and diesel prices experiencing significant hikes. The Chamber also noted that the international Free on Board (FOB) price of petrol increased by 4.26%, from $1,251.07 per metric tonne to $1,304.39.
Diesel is expected to record the steepest increase, with its FOB price rising by 8.51%, from $1,404.73 to $1,524.22 per metric tonne. This is expected to push the resulting projected retail price to GH¢22.42 per litre, compared with the current average of GH¢18.24. The significant increase in diesel prices is likely to have a ripple effect on the transportation and logistics sectors.
LPG prices are also projected to rise after its international FOB price increased by 9.10%, from $712.43 to $777.59 per metric tonne. COPEC estimates a retail price of GH¢15.68 per kilogramme in the October window. This increase is likely to affect households and businesses that rely on LPG for cooking and other purposes.
COPEC commended the government for maintaining crude supply to local refineries, which it said is supporting continuous production. The Chamber, however, urged the government to accelerate the expansion of the Tema Oil Refinery (TOR), saying increasing its refining capacity from the current 45,000 barrels per day to 100,000 barrels per day could reduce Ghana’s dependence on imported finished petroleum products.
The Chamber also appealed to Oil Marketing Companies (OMCs) to consider reducing some of their margins to cushion consumers against the expected price increases. This appeal is likely to be seen as a move to mitigate the impact of the price hikes on consumers, who are already facing economic challenges.
The price hikes are expected to take effect from October 1, and consumers are advised to prepare for the increased costs. The government and other stakeholders are urged to work together to find solutions to the challenges facing the petroleum sector, including the high dependence on imported fuel and the impact of price hikes on consumers.
Key points
- COPEC projects petrol to rise by 5.21% to an average of GH¢17.78 per litre.
- Diesel is expected to increase by 22.91% to GH¢22.42 per litre.
- LPG prices are projected to rise to GH¢15.68 per kilogramme.
