Petrol, Diesel And LPG Expected To Rise From September 16

Petrol, diesel and Liquefied Petroleum Gas (LPG) prices are expected to increase from Wednesday, September 16, following a rise in international crude oil and refined petroleum product prices.

The Chamber of Petroleum Consumers (COPEC) projects the average price of petrol to increase by 4.24%, from GH¢15.60 to GH¢16.26 per litre.

Diesel is expected to record a larger increase of 10.23%, rising from the current average of GH¢17.30 to GH¢19.07 per litre.

The projected price of LPG is GH¢15.32 per kilogramme.

COPEC’s projections are based on developments in the latest petroleum pricing window. It said the global crude oil price increased from $89.30 to $103.07 per barrel during the period.

The Ghana cedi, however, recorded a marginal appreciation against the US dollar, moving from an average interbank rate of GH¢11.5166 to the dollar at the beginning of the window to GH¢11.4830 at the close, representing an appreciation of 0.29%.

For petrol, COPEC said the international Free-On-Board (FOB) price increased by 10.08%, from $1,136.50 to $1,251.07 per metric tonne.

After taking the movement in the exchange rate into account, the projected retail price is GH¢16.26 per litre. COPEC estimates that prices could range between GH¢15.44 and GH¢17.08 per litre, depending on market conditions and the margins applied by oil marketing companies.

The FOB price of diesel also increased, moving from $1,250.50 to $1,404.73 per metric tonne, a rise of 12.33%.

COPEC’s projected average retail price of GH¢19.07 per litre represents a 10.23% increase over the current average. It expects diesel to sell between GH¢18.12 and GH¢20.02 per litre.

LPG recorded the largest increase among the three products in international pricing terms. Its FOB price rose by 16.45%, from $611.75 to $712.43 per metric tonne.

COPEC therefore projects an average retail price of GH¢15.32 per kilogramme, with an estimated range of GH¢14.55 to GH¢16.08.

The projected increases come as international oil prices remain elevated. Brent crude was trading above $100 per barrel in the latest global market developments, amid supply concerns linked to disruptions in international oil trade.

COPEC is asking the government to extend the fuel subsidy intervention introduced in the first pricing window of September.

The group wants the government to provide a GH¢1 per litre relief on petrol while maintaining the existing GH¢2 per litre intervention on diesel until international petroleum prices return to more normal levels.

It is also calling for faster expansion of the Tema Oil Refinery (TOR) as part of measures to reduce Ghana’s dependence on imported refined petroleum products.

The government has already announced plans to expand TOR’s refining capacity to 100,000 barrels per day. President John Mahama directed the Energy Ministry and TOR management in August to prepare a strategic plan for the expansion.

TOR resumed crude oil processing earlier this year but is currently operating at about 28,000 barrels per stream day, with plans to restore its capacity to 45,000 barrels per stream day.

COPEC also expects oil marketing companies to consider reducing some of their margins to limit the impact of the projected increases on consumers.

The projected prices will take effect from Wednesday, September 16, subject to the actual prices set by individual oil marketing companies.