Ghana: Petrol Prices Set To Rise By 4.8%, Diesel By 2.10% From Sept. 1 – COMAC

Oil marketing companies in Ghana are expected to increase petrol and diesel prices at the pumps from Tuesday, Sept. 1, the Chamber of Oil Marketing Companies (COMAC) said.

Petrol prices are projected to rise by 3.60% to 4.80%, while diesel prices are expected to increase by 0.50% to 2.10%, COMAC said.

The projected increases reflect higher global crude oil and refined petroleum product prices, despite the recent appreciation of the Ghanaian cedi.

The government’s decision to extend its 2 Ghanaian cedi per litre reduction in the regulatory margin on diesel is expected to moderate the increase and cushion consumers, COMAC said.

Liquefied petroleum gas (LPG) prices, meanwhile, are projected to decline by 0.90% to 1.50%.

Average crude oil prices rose 1.75% to $92.11 a barrel from $90.53 during the pricing period, despite the United States announcing what COMAC described as its toughest sanctions against Iran.

The sanctions had limited immediate impact, with unsuccessful mediation efforts by Qatar and Pakistan, as well as uncertainty over shipping through the Strait of Hormuz, keeping prices elevated, COMAC said.

Oil prices are expected to remain high and volatile, with intermittent transit through the Strait of Hormuz continuing to influence the market.

Although Iran and Oman are negotiating a temporary shipping corridor, Iran maintains that normal passage will not resume until U.S. sanctions and the blockade are lifted, COMAC said.

International prices of all major refined petroleum products also increased during the period. Petrol recorded the largest increase, rising 8.86%, followed by diesel at 5.51% and LPG at 3.31%.

NPA price floors

Meanwhile, Ghana’s National Petroleum Authority (NPA) has increased the price floors for petrol and diesel for the first pricing window of September compared with the second pricing window of August.

The price floor for petrol has been set at 14.53 Ghana cedis per litre, up from 13.92 cedis in the previous pricing window.

For diesel, the price floor has increased to 15.60 cedis per litre from 15.19 cedis.

LPG is the only major petroleum product to record a decline in its price floor, falling to 10.85 cedis per kilogram from 10.98 cedis.

Price floors represent the minimum thresholds at which oil marketing companies (OMCs) and LPG marketing companies (LPGMCs) can retail petroleum products during a pricing window.

Under Ghana’s Petroleum Product Pricing Guidelines, all OMCs and LPGMCs are required to comply with the applicable price floors.

The floors exclude premiums charged by international oil trading companies (IOTCs), operating margins of bulk import, distribution and export companies (BIDECs), as well as marketers’ and dealers’ margins.

Ghana reviews petroleum product prices every two weeks, with changes generally reflecting movements in international petroleum prices, the exchange rate and other applicable pricing components.