Following a spike in the price of the product on foreign markets, the Chamber of Petroleum Consumers Ghana (CPCG) has predicted that fuel prices will rise again within 10 days.
On or before Tuesday, May 18, the new rates will take effect.
According to a press release signed by Executive Secretary Duncan Amoah, the foreign retail price for gasoline has risen from $630.525/mt to $655.625/mt due to recent global activities.
The price of Automotive Gas Oil (AGO) or diesel has increased to $545/Mt from $520/Mt. LPG has increased by a little more than $1.6377 during the same time span.
“These changes on the international market equate to around Ghp8 per litre on local pump prices for both petrol and diesel, or about 5% on the international price index, reflecting a further rise of around 1.25 percent on existing pump prices,” according to the announcement.
“This will contribute to the previous increases,” the press release continued.
The CPCG clarified, “This would put the cumulative increases at Ghanaians’ pumps to in excess of a cumulative nominal of Ghp 68 per litre or 14 percent increases within a spate of less than 10 days.”
This comes just two weeks after fuel prices in Ghana increased by 12% as a result of new tariffs, increased margins by the National Petroleum Authority and the sector, as well as price hikes on the international market.
The National Petroleum Authority reversed its decision to raise the fuel margin to 17 pesewas per litre in response to public outcry.
“The 17 pesewas per litre rise in fuel margins previously reported by the NPA has been reduced to 9 pesewas per litre effective Wednesday 5th May 2021,” according to an NPA communique dated May 4.
Since the world does not seem to have any mitigation measures in place to protect the ordinary person from these foreign market price fluctuations, the impact of this rise will be felt immediately at the pumps and in people’s wallets, according to the CPCG.
“We encourage authorities to put concrete strategies in place as soon as possible to prevent these hikes, as they are having a significant impact on the general cost of living in the region, with transport operators preparing to raise fares in the coming days,” the CPCG said.
Read the full statement below:
FUEL PRICES GOING UP AGAIN IN A SPATE OF 10 DAYS
Barely a fortnight after prices at the pumps in Ghana shot up by over 12% due to the introduction of some taxes, increases in margins by the NPA and industry as well as increases on the international market, fuel prices are set to go up again in the next few hours.
Geopolitical events over the past few days has led to increases in International Market Prices from $630.525/mt to around $655.625/mt for premium or petrol as of friday whiles prices of AGO or diesel has moved from $520/Mt to $545/Mt.
Lpg has also seen a little over $1.6377 increase within the period though the country’s currency has been relatively stable within the period.
These increases on the international market translates to around Ghp 8/litre on local pump prices for both petrol and diesel or around 5% on international price index representing a further increase of about 1.25% variance on current pump prices.
This variance is expected to likely reflect at the Ghanaian pumps on or before Tuesday (18/05/2021) and will eventually add on to the recent increases of over 12% a few days ago thereby bringing the cumulative increases at the Ghanaians pumps to, in excess of a cumulative nominal Ghp 68/litre or 14% increases at the pumps within a spate of under 10 days.
The trend if not checked could likely continue or escalate as the geopolitical developments are pointing to bullish sentiments on the international market in the coming days.
The country does not have seem to have in place any mitigating policies or programmes in place to cushion the average Ghanaian from these International Market price shocks as the effects reflect directly at the pumps and on pockets.
A myriad of taxes including the Price Stabilisation and Recovery Levy component on pump prices which should have provided a buffer in times like these for some of these price movements has barely ever been used to cushion Ghanaians and the market around these times when needed and thus fuel prices becoming pretty unbearable on pockets.
The country’s Strategic Stocks which could have also been used to offset these price movements on the international market is currently non existent as the Bulk Oil Storage and Transportation instead of holding strategic stocks has now become fully commercial in their outlook though they continue to take monies from Ghanaians at the pumps in the name of Bost margins, we believe this particular margin ought to be looked at again if we need to bring fuel prices down.
The current state of Ghanas only National Refinery leaves so much to be desired as nothing seems to work from poor management practices and decisions as no productivity is happening there, even water has over the past few weeks been disconnected from the Refinery due to its inability to settle Ghana Water Company its indebtedness.
We call on Authorities to as a matter of urgency put concrete strategies in place to forestall these increases as it is affecting harshly the general cost of living within the country with transport operators waiting to slap increases on fares in the coming days.