Fuel prices are expected to increase from September 1 as rising international crude oil and refined petroleum product prices outweigh gains made by the cedi.
The Chamber of Oil Marketing Companies (COMAC), in its outlook for the September 1 to 16 pricing window, projects that petrol prices could increase by up to 4.80 percent to about GH¢16.39 per litre.
Diesel is expected to rise by about 2.10 percent to GH¢17.60 per litre, while liquefied petroleum gas (LPG) could decline marginally by 0.93 percent to GH¢13.73 per kilogramme.
The projected increases have been driven largely by developments on the international petroleum market. Average crude oil prices rose by 1.75 percent from US$90.53 to US$92.11 per barrel, while refined petroleum products also recorded significant increases.
Petrol prices on the international market rose by 8.86 percent, diesel by 5.51 percent and LPG by 3.31 percent.
The increases occurred despite a 3.64 percent appreciation of the cedi to GH¢11.3697 against the US dollar between August 12 and August 27. The appreciation reversed three consecutive pricing windows of depreciation and marked the currency’s strongest level since June.
Government intervention, however, is expected to cushion diesel consumers from the full impact of the increase.
The government has extended its GH¢2 per litre reduction in the regulatory margin on diesel into the first pricing window of September. The intervention, initially expected to end in August, was extended following concerns about a possible sharp increase in diesel prices.
Meanwhile, the National Petroleum Authority (NPA) has raised the price floor for petroleum products for the September 1 to 16 pricing window.
The minimum benchmark price for petrol has increased to GH¢14.53 per litre, while diesel has risen from GH¢15.19 to GH¢15.60 per litre. LPG’s benchmark price, however, has declined from GH¢10.98 to GH¢10.85 per kilogramme.
With more than 200 Oil Marketing Companies operating in the country, some are expected to adjust their pump prices immediately, while others may wait to monitor competitors.
Overall, consumers should expect higher prices for petrol and diesel in the first half of September, as rising global petroleum prices continue to put pressure on the domestic market despite the cedi’s recent appreciation.
Source: businesspostonline
