Fuel prices are set to cross the GH¢10 per litre mark this week after the depreciating cedi and rising crude oil prices sustained increments in ex-pump prices since November last year.
Estimates by the Association of Oil market Companies (AOMCs), the Chamber of Petroleum Consumers (COPEC) and the Institute for Energy Security (IES) indicated that the price of petrol could rise by more than 30 per cent to above GH¢10 a litre from today.
Experts say escalating fuel prices risked sustaining the escalating cost of living by raising inflation, dampening economic growth through weakened consumption and production, and increasing the fiscal deficit.
Inflation has already peaked at 15.7 per cent in February, up from 13.9 per cent in January, forcing an emergency Monetary Policy Committee (MPC) meeting by the Bank of Ghana this week.
COPEC and IES said in their Separate press releases on Monday that the prices could surpass GH¢10 from today, when the second pricing window of the National Petroleum Authority (NPA) opens.
The AOMCs estimates, however, showed that the price could climb up to GH¢11 per litre within the next pricing window should the factors forcing the rise to remain the same or worsen.
The authority, which regulates the downstream petroleum sector, gives indicative prices for OMCs, the retailers of refined petroleum products, to use in pricing their products.
“The petroleum price indicators as published by the NPA show that the price of gasoil (diesel) will increase by 30.41 per cent from GH¢8.22 per litre in this current window to GH¢10.721 per litre, beginning March 16, 2022 and the ex-pump prices of gasoline (petrol) will increase by 18.25 per cent from Gh¢8.22 per litre to Gh¢9.727 per litre within the same period.
“The ex-pump prices of diesel and petrol could increase by 24.33 per cent averagely from GH¢8.22 per litre in this current window to GH¢10.22 per litre, beginning March 16, 2022 for these two products,” the COPEC statement said.
It said the development meant that a gallon of fuel would move from GH¢37 per gallon to GH¢45.99, beginning today
The statement said the ex-pump prices of liquefied petroleum gas (LPG) would also increase by 23 per cent from GH¢9.8 per kilogramme (kg) in the current window to GH¢12.04 per kg in the next window.
“This implies that a 14.5kg will be sold at GH$174.58,” COPEC said.
In the statement signed by its Executive Secretary, Duncan Amoah, COPEC said the petroleum price indicators showed that the free on board (FOB) prices of petrol had increased by 19.28 per cent from $917.48 per metric tonne (mt) to 1094.33/mt while diesel had risen by 34.57 per cent from $845.50/mt to $1137.78/mt.
It said that of LPG had increased by 17.42 per cent from $845.93/mt to $993.25/mt between the first window and second window of March.
“Further, the cedi has seen a sharp depreciation against the dollar, by 9.7 per cent from GH¢6.8360 to GH¢7.500 to a dollar. However, the NPA quoted a cedi equivalent of GH¢7.179 to a dollar, which is even lower than what the market is trading at,” the statement said.