Consumers across Ghana are expected to pay more for petrol, diesel and liquefied petroleum gas (LPG) from today, July 16, as the second fuel pricing window for July takes effect.
The expected increase follows rising global crude oil prices and the recent weakening of the cedi, both of which have pushed up the cost of importing fuel into the country.
Industry projections by the Chamber of Oil Marketing Companies (COMAC) suggest that petrol prices could rise by 5.3%, diesel by 7.5% and LPG by 1.3%.
The higher fuel prices are likely to increase transport fares and business operating costs. If businesses pass these additional expenses on to consumers, the prices of goods and services could also rise.
COMAC said the latest outlook reflects renewed uncertainty in the global energy market.
According to the Chamber, geopolitical tensions, including concerns over the safety of oil shipments through the Strait of Hormuz and renewed friction between the United States and Iran, have driven up international crude oil and refined petroleum prices.
As a result, Brent crude oil has climbed above US$80 per barrel, making imported fuel more expensive for countries such as Ghana.
The impact has been amplified by the depreciation of the cedi against major international currencies, further increasing the cost of fuel imports and putting additional pressure on local pump prices.
Fresh data from the National Petroleum Authority (NPA) is reported to be showing an upward adjustment in the official price floors for the second pricing window in July.
The minimum price for petrol has increased from GH¢12.79 to GH¢13.28 per litre, representing a rise of GH¢0.49 or 3.8%.
Diesel recorded the largest adjustment, with the price floor moving from GH¢13.54 to GH¢14.35 per litre, an increase of GH¢0.81 or 6%.
LPG prices have also gone up slightly, with the minimum price rising from GH¢10.11 to GH¢10.19 per kilogram, an increase of 0.8%.
These price floors serve as the minimum rates below which Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) are not expected to sell petroleum products during the current pricing window.
The latest increases are expected to put additional strain on household budgets, especially at a time when transport operators and businesses are already facing rising operating costs.
Diesel, which is widely used in commercial transport, manufacturing, mining and agriculture, is expected to have the greatest impact on production and distribution costs.
This could eventually lead to higher prices for many consumer goods.
The fuel price adjustments also threaten Ghana’s recent gains in controlling inflation, as rising energy costs often affect the prices of products and services across the economy.
With global geopolitical tensions continuing and exchange rate fluctuations still influencing import costs, consumers may face further fuel price increases in the coming pricing windows.
