Ghana: Petrol, Diesel Prices To Go Up By 10%—COPEC Predicts

Fuel consumers should be bracing themselves to pay more for the commodity during the second pricing window which begins on 16th October 2022.

A litre of petrol and diesel currently sells at Gh¢11.10 and Gh¢13.99 respectively.

However, the Chamber of Petroleum Consumers (COPEC), a consumer advocacy group, is projecting over a 10 per cent increase in pump prices for both petrol and diesel in the second pricing window.

In a statement signed by the Executive Secretary of COPEC, Mr. Duncan Amoah, he said: “From observed figures within the downstream industry and forex movements, COPEC anticipates an average price escalation of about 10.12% for both petrol and diesel based on the increase in the price of crude oil on the international market and the depreciation of the cedi.

“Between the current window and the next window due, 16th October 2022, crude oil price is observed to see an increase of 3.66% from $89.46 to $92.73 per barrel, whilst the Dollar index has further gone up by about 4.08% from GHS10.21 to GHS10.627 per dollar as per government rate, (Conservative figures) though actual market rates are quite higher currently.”

As of Saturday morning, Brent was trading at $91.63 per barrel while WTI was trading at $85.61

For the exchange rate, US$1 is being exchanged for Gh¢12.05

Fuel statement

CHAMBER OF PETROLEUM CONSUMERS

ACCRA

14/10/2022

FUEL PRICES TO GO UP FURTHER BY 10% FROM 16TH OCTOBER

The upcoming second fuel pricing window of October 2022 which commences on Sunday, 16/10/2022, fuel prices across pumps within the country are projected to see an increase of average 10% for both petrol and diesel.

From observed figures within the downstream industry, and forex movements, COPEC anticipates an average price escalation of about 10.12% for both petrol and diesel*_ based on the following analysis.

Between the current window and the next window due, 16 Oct 2022, Crude oil price is observed to have seen an increase of 3.66% from $89.46 to $92.73 per Barrel, whilst the Dollar index has further gone up by about 4.08% from GHS10.21 to GHS10.627 per Dollar as per Government rate (Conservative figures) though actual market rates are quite higher currently.

The corresponding international processed Petroleum prices for the next window averages as follows:

Petrol: $964.75/MT (up by 15.72%)

Diesel: $1,097.15/MT (up by 9.60%)

Internally, the projected average price of both Petrol and Diesel for the next window are expected to be GHS13.77/L, showing a price jump of 10.12% over the current Mean fuel Prices for both products across the various OMCs trading.

From observed data, Petrol, which is currently selling at an industry average of GHS11.06/L is likely to be sold at GHS12.38/L (11.88% higher) from 16 October 2022 whilst Diesel currently selling at an industry average of GHS13.95/L is likely to be sold at GHS15.16/L. (8.72% higher)

For LPG, the international price is estimated to hit $618.34/MT (up by 3.81%); the price of LPG is likely to go up by 5.04% to sell around GHS10.21/kg.

Considering no sudden jerks in Crude Oil pricing, that may lead to changes in Petrol, Diesel and LPG Prices on the International market, the Mean Ex-pump prices are expected to be within the projected figures by +/-2% as indicated below:

Petrol: GHS12.12/L to GHS12.63/L

Diesel: GHS14.86/L to GHS15.46/L

LPG: GHS10.01/kg to GHS10.41/kg

We implore on the petroleum service providers to be considerate of applying the full force of the indexes in their pricing as times are rough for everyone, we are without equivocation, mindful that, the projected figures are conservatively lower than what the actuals could be due to the continuous depreciation of the local currency.

COPEC is once again, further, admonishing the Government to do whatever it deems necessary, to ensure an urgent stabilisation of the cedi to the Dollar exchange rate in order to prevent pricing of petroleum products getting to an impending disaster as the effect of these steep increases in fuel prices cuts across all sectors of the local economy and to also further ensure some drastic reductions of some of the existing taxes and levies on Petroleum products to help ease the burden on consumers. 

Source: https://energynewsafrica.com