Fuel prices are likely to up in the coming days following a surge in prices of finished petroleum products and crude on the international market, analysts have projected.
In a separate analysis of the May 2022 First Pricing Window (May 1 to May 15, 2022), the Chamber of Petroleum Consumers (COPEC) and the Institute for Energy Security (IES) projected that prices of petrol, diesel and Liquefied Petroleum Gas (LPG) would record a marginal increase on the local market this week.
Currently, petrol is selling at an average of GHS9.41 per litre, while diesel is pegged at GHS11.12 per litre – an increase of 7.34 per cent from the previous average price of GHS 10.36 per litre.
In its projections for the May 2022 Second Pricing Window (May 16 to May 31, 2022), COPEC projected that the prices of petrol would go up by 4.74 per cent to settle at GHS9.990 per litre whereas diesel would record a 1.08 per cent gain to settle at GHS11.35 per litre.
The Chamber also projected that the price of LPG would also go up by 3.76 per cent to sell at GHS10.473/kg.
“Considering no sudden jerks in Crude Oil pricing, that may lead to changes in Petrol, Diesel and LPG prices on the international market, then the Ex-pump prices are expected to be within the projected figures to within one per cent,” it said.
“The expected increase in fuel prices is primarily due to the fallen Dollar exchange rate and increase in prices of processed fuel ( Petrol, Diesel and LPG) on the international market with an increase in Crude price by $3/barrel,” it added.
Similarly, the IES projected that fuel prices would go up marginally at the pumps, but it did not indicate the rate of increment.
In its review of the just-ended pricing window, the Institute said an increment in prices of finished petroleum products on the international market would trigger prices to rise locally for the rest of the month.
The IES said though the cedi recorded some gains (appreciated by 0.28 per cent) against the US Dollar in the just-ended pricing window, prices of petrol, diesel and LPG may still see an upward adjustment, barring any intervention from the Government.
“For the rest of May 2022, the 7.64 per cent rise in Gasoline price, 1.90 per cent rise in Gasoil price, and the 6.05 per cent rise in the price of LPG on the international market will push local market prices higher.
“In IES’ estimation, the upward revision of Gasoline, Gasoil, and LPG prices may be significant, on the back of rising international fuel prices, and the growing pockets of fuel shortages across the country,” it said.
There have been persistent calls on the Government to reduce taxes on petroleum products to cushion consumers against the surge in prices of petroleum products on the international market, which has a direct impact on local prices.
The Government has dropped some margins on petroleum products, amounting to a reduction of 15p per litre – but analysts say the reduction is insignificant given the rate of increment since the beginning of the year.