The Chamber of Petroleum Consumers (COPEC) is projecting marginal increases in petrol and diesel prices at the pumps when the second pricing window takes effect on July 16, citing higher international refined petroleum product prices and a slight depreciation of the cedi against the US dollar.
According to COPEC, the projected increases come despite global crude oil prices easing from US$78 per barrel to US$71.9 per barrel during the pricing window. However, gains in the prices of refined petroleum products, coupled with the cedi’s 0.56% depreciation against the US dollar, are expected to push pump prices upward.
The Free-on-Board (FOB) price of petrol rose by 5.4%, increasing from US$920.34 to US$970.63 per metric tonne. Based on current market conditions, COPEC expects petrol to retail between GH¢13.15 and GH¢14.53 per litre, depending on pricing decisions by individual Oil Marketing Companies (OMCs).
Diesel prices are also expected to increase after its international FOB price climbed 8.75%, from US$896.02 to US$974.40 per metric tonne. COPEC projects diesel to sell between GH¢14.16 and GH¢15.65 per litre across the market.
In contrast, liquefied petroleum gas (LPG) is expected to record a slight reduction in retail prices after its international FOB price declined by 0.52%, from US$548.50 to US$545.65 per metric tonne. COPEC estimates LPG will retail between GH¢9.47 and GH¢10.46 per kilogram.
Despite the projected increases for petrol and diesel, the Chamber has urged Oil Marketing Companies to exercise restraint and maintain current pump prices where possible to cushion consumers.
Meanwhile, fresh figures from the National Petroleum Authority (NPA) indicate that the price floors for petrol, diesel and LPG have all been raised for the second pricing window of July.
The NPA has increased the petrol price floor to GH¢13.28 per litre, up from GH¢12.79 per litre in the first pricing window, representing a GH¢0.49, or 3.8%, increase.
The diesel price floor has been adjusted upward to GH¢14.35 per litre from GH¢13.54 per litre, an increase of GH¢0.81, equivalent to 6.0%.
For LPG, the price floor has edged up to GH¢10.19 per kilogram, compared with GH¢10.11 per kilogram previously, reflecting a 0.8% increase.
The latest adjustments reverse the recent downward trend in petroleum price floors as the NPA aligns its benchmarks with prevailing market conditions.
The upward revision comes amid renewed geopolitical tensions in the Middle East involving the United States and Iran, which have driven global oil prices higher, with Brent crude at one point climbing above US$80 per barrel.
Analysts warn that any sustained increase in international crude oil prices, combined with movements in the cedi, could place renewed upward pressure on fuel prices in Ghana in the coming pricing windows.
Source: 3news
