In a surprising turn of events, several Oil Marketing Companies (OMCs) in Ghana have begun increasing fuel prices, despite earlier projections by The Chamber of Petroleum Consumers (COPEC) that prices would see a slight decrease in the second pricing window of January.
COPEC had forecasted a 1-3% reduction in petrol prices and a 1% drop in diesel prices, based on international market trends and expectations for the performance of the cedi.
COPEC’s statement had indicated that while a slight decrease in fuel prices was expected, the price of Liquefied Petroleum Gas (LPG) might see an increase of about 3%. The Chamber also noted that the volatility of the cedi and the global market conditions, particularly fluctuations in crude oil prices, could have a significant impact on pricing. “Indications are that prices of petroleum products could go down between 1% and 3% for petrol and diesel. LPG could go up some 3%. However, this will be subject to availability of the product and then again the cedi’s performance over the period,” COPEC had explained.
However, the reality has deviated from these expectations. Prominent OMCs, including the state-owned Ghana Oil Company Limited (GOIL) and Shell, have adjusted their prices upwards for both petrol and diesel. GOIL raised the price of petrol from GH₵14.99 per litre to GH₵15.74, and diesel went up from GH₵15.60 to GH₵15.77 per litre. Shell followed suit with a similar price hike, increasing the cost of petrol from GH₵15.30 to GH₵15.59 per litre, while diesel saw a rise from GH₵15.66 to GH₵15.79.
The increase in fuel prices is largely attributed to rising crude oil prices on the international market, compounded by the continued depreciation of the cedi against major currencies. These external factors have exerted pressure on OMCs to adjust their pricing to reflect the higher cost of procurement.
The price hikes are expected to have widespread economic implications, particularly on transportation costs, which will likely be passed on to consumers in the form of higher prices for goods and services. This, in turn, could place additional financial strain on households and businesses alike, highlighting the ongoing challenges posed by global economic pressures and domestic currency fluctuations.
