Another fuel price hike is on the horizon, with motorists, transport operators and businesses expected to pay more for petrol, diesel and LPG from August 1 as industry forecasts point to increases in the first pricing window of the month.
The Chamber of Oil Marketing Companies (COMAC) projects that petrol prices could increase by about 7.58%, while diesel is expected to record the sharpest rise of about 12.50%.
LPG prices are also projected to go up by about 4.13%.
If the projections materialise, consumers will pay more at the pumps, increasing transportation costs and the cost of doing business.
The expected increases could also trigger fresh calls for transport fare adjustments and raise operating costs across several sectors of the economy.
COMAC attributes the projected increases to the escalating conflict between the United States and Iran, which has driven up global crude oil and refined petroleum product prices due to concerns over supply disruptions, higher freight costs and security risks along the Strait of Hormuz.
Average crude oil prices rose by 23.25% in late July, climbing from US$71.90 per barrel to US$88.62 per barrel. Refined petroleum products also recorded significant increases, with diesel rising by 24.84%, petrol by 12.58% and LPG by 12.24%.
The projected fuel price hikes are also being influenced by a slight depreciation of the Ghana cedi. During the pricing period, the cedi weakened by 1.41% against the US dollar, moving from GH¢11.50 to GH¢11.66 to the dollar, making petroleum imports more expensive.
The projections come after the National Petroleum Authority announced higher price floors for the first pricing window of August.
The petrol price floor has been set at GH¢14.53 per litre, representing a 9.41% increase over the previous pricing window.
Diesel’s price floor has risen by 18.26% to GH¢16.97 per litre, while LPG’s price floor increased by 8.54% to GH¢11.06 per kilogram.
The price floor represents the minimum price at which oil marketing companies and LPG marketing companies are expected to sell petroleum products during the pricing window.
Fuel prices have already been trending upward in recent weeks, with diesel selling for nearly GH¢18 per litre at some filling stations, while petrol is approaching GH¢16 per litre at selected outlets.
The latest projections are likely to renew concerns within the transport sector.
Earlier this week, the Ghana Private Road Transport Union threatened a 30% increase in transport fares, citing rising fuel costs and shrinking profit margins before suspending the planned adjustment.
Should the projected increases take effect, pressure for transport fare hikes is expected to return, potentially increasing commuting costs for households and adding to inflationary pressures across the economy.
