Effective from July 17, 2023, several Oil Marketing Companies (OMCs) in Ghana have adjusted the prices of petroleum products at the fuel pumps.
TotalEnergies has increased the price of diesel and petrol to ¢12.45 per litre, up from the previous price of ¢12.30.
GOIL, the market leader, is now selling diesel at ¢12.45 per litre, while petrol is priced at ¢12.40 per litre, compared to the previous price of ¢12.30.
Shell has also raised the price of diesel to ¢12.45 per litre, previously ¢12.30, and petrol to ¢12.40 per litre, previously ¢12.40.
As a result, prices for some petroleum products have increased by 10 to 15 pesewas per litre.
The recent increase in petroleum product prices at the pumps in Ghana has been attributed to different factors by the Oil Marketing Companies (OMCs).
Total Energies has stated that the increase is to align with the cost price of the Bulk Oil Distribution Companies (BDCs). On the other hand, GOIL, the market leader, has cited the slight depreciation of the Ghana cedi against the US dollar as the reason for the adjustment.
Initially, it was expected that prices would remain stable at the pumps from July 16, 2023. However, the unexpected increase has exceeded industry expectations and projections for the second pricing window of July 2023.
This price hike could have a negative impact on inflation in the coming months. However, the National Petroleum Authority (NPA) has expressed disagreement with the OMCs’ explanation, stating that there has been no depreciation of the Ghana cedi based on the reports from banks, as confirmed by an anonymous senior official at the NPA.
According to information provided by the Bulk Oil Distribution Companies (BDCs) to Joy Business, there have been marginal changes in the international market prices of finished petroleum products during the pricing window from June 7 to July 11, 2023, compared to the previous window.
The BDCs have indicated that these changes are reflected in the premiums used for pricing petroleum products from July 16 to 31, 2023.
They have further stated that crude oil prices on the world market slightly increased by approximately $1.48/barrel per day (2.13%) to around $75.85/bbl during this period. This increase is mainly attributed to a reduction in supply by major oil-producing countries such as Saudi Arabia and Russia.
Additionally, the BDCs have informed Joy Business that the price of liquefied petroleum gas (LPG) experienced a slight rise in this window, following a consistent decline over the past five windows.
Despite the global economic uncertainties, including the bleak economic outlook and rising interest and inflation rates in the US during the second quarter of 2023, petroleum product prices were impacted by the volatile nature of the market. The uncertainties surrounding the US debt ceiling bill also contributed to the fluctuations in petroleum product prices, which, in turn, affected local pump prices.