The Chamber of Petroleum Consumers (COPEC- Ghana), an energy think tank, predicts that fuel prices in Ghana would surpass ten cents per litre by March 16.
Fuel prices have already surpassed $8 per litre.
According to COPEC, the “Petroleum Price Indicators of 11th March averages for calculating ex-pump prices beginning from Wednesday, the 16th of March, 2022 (2nd pricing window of March) shows that FOB prices of petrol have increased by 19.28 percent from $917.48/MT to 1094.33/MT, diesel by 34.57 percent from $845.50/MT to $1137.78/MT, and LPG by 17.42 percent from $845.93/MT to $9
“Furthermore, the cedi has dropped 9.71 percent against the dollar, from Ghc6.8360 to Ghc7.500 to the dollar.” The National Petroleum Authority (NPA), on the other hand, quoted a Ghana Cedi equivalent of Ghc7.179 to a dollar, which is even lower than the market rate.”
Earlier, Mr Edward Bawa, Member of Parliament for Bongo, anticipated that petrol costs would reach 9 cedis per liter by the end of March.
Edward Bawa is concerned that if the government does not act quickly, prices would skyrocket before the end of the month.
“Let us be honest, if the administration does nothing and the next window, which is on March 16th, there will be an increase in petrol prices,” the opposition politician warned.
“By the end of the month,” he said, “we’ll be at 9 cedis per litre.”
Concerning the impact of Russia-Ukraine tensions, he stated that the situation is a blessing in disguise for Ghana because the country is also an oil producer.
“You and I both know that obviously Ukraine would have had an impact on us, but there was an increase in petroleum prices in Ghana prior to Ukraine’s invasion.”
“We are in the winter season, and demand for hydrocarbons in Europe and America was extremely high, so we were already in the ascending form, so that cannot be the case.”
“Ukraine may have exacerbated the problem, but I believe it is a blessing in disguise in that particular state.” While we gripe about local costs, we are always smiling to the bank because of the money we get from selling [crude oil] products. So, in my opinion, it’s a win-win situation,” he told media in Parliament on Thursday.
Oil prices increased on Thursday, following a dramatic dip the previous day, as the market considered whether major producers would increase supply to assist fill the output gap caused by sanctions imposed on Russia for its invasion of Ukraine, according to the Economic Times.
Brent crude futures were up $3.10, or 2.8 percent, to $114.24 a barrel at 0419 GMT, after trading in a $5 range. In the previous session, the benchmark contract fell 13%, its worst one-day plunge in over two years.
West Texas Intermediate (WTI) crude futures in the United States were up $1.58, or 1.5 percent, to $110.28 a barrel after trading in a more than $4 range. The contract had dropped 12.5 percent in the previous session, the most in a single day since November.