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Fuel prices projected to increase by 10%

Duncan Amoah,Executive Secretary of COPEC

Duncan Amoah,Executive Secretary of COPEC

Fuel prices across pumps within the country are projected to see an increase average of 10 per cent for both petrol and diesel in the second fuel pricing window of October 2022, which commences tomorrow.

According to the Chamber of Petroleum Consumers (COPEC), which is currently selling at an industry average of GHC11.06 per litre is likely to be sold at GH¢12.38 per litre, representing 11.88 per cent higher.

A statement issued by the Executive Secretary of COPEC, Duncan Amoah, in Accra, yesterday, said diesel which sells at about GH¢13.95 per cent would be sold at GH¢15.16 per litre, showing 8.72 per cent higher.

Based on its analysis, it said for Liquefied Petroleum Gas (LPG) the international price was estimated to hit $618.34/MT (up by 3.81 per cent); while the price of (LPG) was likely to go up by 5.04 per cent to sell around GH¢10.21 per kilogramme.

“From observed figures within the downstream industry, and forex movements, COPEC anticipates an average price escalation of about 10.12 per cent for both petrol and diesel,” the statement said.

Adducing reasons for the anticipation, it said, between the current window and the next window due, crude oil price was observed to have seen an increase of 3.66 per cent from $89.46 to $92.73 per barrel.

The statement said the dollar index had further gone up by about 4.08 per cent from GH¢10.21 to GH¢10.627 per Dollar as per the government rate (conservative figures) though actual market rates are quite higher currently.

It said the corresponding international processed Petroleum prices for the next window averages as petrol: $964.75/MT (up by 15.72 per cent) and Diesel: $1,097.15/MT (up by 9.60 per cent).

“Internally, the projected average price of both Petrol and Diesel for the next window are expected to be GH¢13.77/L, showing a price jump of 10.12 per cent over the current Mean fuel Prices for both products across the various Oil Marketing Companies (OMCs) trading,” it said.

According to the statement, 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 were expected to be within the projected figures by +/-2 per cent.

It said Petrol would be GH¢12.12/L to GH¢12.63/L; Diesel, GH¢14.86/L to GH¢15.46/L and LPG, GH¢10.01/kg to GH¢10.41/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,” the statement said.

COPEC reiterated calls on the government 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 well as reduce taxes and levies on fuel to cushion the public.

BY TIMES REPORTER

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