COPEC projects higher fuel prices beyond GH¢8 in March

The Chamber of Petroleum Consumers (COPEC) is predicting fuel prices at the pump to go beyond GH¢8 with effect from today, March 1, through the coming weeks.

In what will begin the first pricing window for the new month, it estimated petrol to sell around GH¢8.125 per litre, representing an increase of 4.6 per cent.

Diesel on the other hand will sell at around GH¢8.255 per litre, an increase of about 3.4 per cent.

On average, the two fuel types will to hover around GH¢8.190 per litre, representing a 3.43 per cent increase.

For liquefied petroleum gas (LPG), COPEC predicted it to sell around GH¢9.163 per kilogramme, an increase of about 2.5 per cent.

According to the chamber, until something drastic changes, “so shall the fuel prices be in Window 1 of March 2022”.

OPEC+ to meet

Meanwhile, news monitored globally by the Daily Graphic indicates that following the rising crude oil prices on the international market, the elite group among the Organisation of the Petroleum Exporting Countries (OPEC+), is scheduled to meet sometime this week to discuss how best to among other things, discuss the Russia-Ukraine crisis and how it can help to produce more to bring down global prices.

Already, one of the big reasons oil prices are near a seven-year high according to a special BBC report is because OPEC and Russia decided to produce less than they promised.

The OPEC and 10 other major crude oil producers, including Russia, have been gradually increasing their output after taking 9.7 million barrels per day out of the market as demand collapsed in the early days of the coronavirus pandemic.

But the group, known as OPEC+, has repeatedly failed to meet its monthly target of adding back 400,000 barrels per day due to production shortfalls in several countries.

Despite huge pressure from major energy-consuming nations, including the United States, to help tame high prices that are fueling global inflation, it was difficult for the coalition to quickly increase output because of limited spare capacity and a fraught geopolitical backdrop.

Russia-Ukraine crisis

The world is now feeling the impact of the crisis as crude oil prices hit close to $100, sparking severe inflationary pressures on economies globally.

Ghana, for instance, is also not spared that ordeal although it is an oil producing country, albeit, not yet a member of OPEC.

There are calls for the government to intervene to reduce the impact of the increasing prices on businesses and other fuel consumers but it is yet to make any pronouncement on the matter.

Experts say that although the government, which is in dire need of revenue may be enjoying a windfall, the consequences of rising fuel prices at the pumps on the economy could be more costly in the medium term.