Fuel prices at the pump in Ghana have witnessed a record increment just days after the President of the Republic, Nana Addo Dankwa Akufo-Addo addressed the country amidst the escalating cost of living.
On Tuesday, November 1, 2022, the price of a litre of diesel crossed the GHS20 mark, skyrocketing from the previous price of GHS18.5 to GHS23.49 per litre. Meanwhile, a litre of petrol also jumped from the previous price of GHS16.50 per litre to the current GHS17.99 per litre. Similarly, kerosene is also currently selling at GHS14.70 per litre.
The hike in prices of fuel comes at a time when the price of crude oil on the world market is relatively stable, selling at $94 per barrel. However, this increment at the pump is attributed to the significant depreciation of the Cedi against the American greenback, and the appreciable increase in Gasoil price on the international fuel market.
The Institute for Energy Security (IES) has earlier predicted that petrol and diesel prices will hit GH¢18 and ¢20 per litre with a gallon price possibly going for Ghc90.00 on the market for the November 2022 first pricing window. The IES, however, noted that, unfortunately, the 1.43% fall in the price of LPG on the world market might not translate into a reduction at the domestic pump, as it may offset the cedi’s depreciation, and rather force the price of the commodity to rise further in the coming days.
Prices of various finished products on the local fuel market saw repeated changes in the just-ended pricing window. Every Oil Marketing Company (OMC) monitored and reviewed their prices upwards twice or more; prior to the end of the pricing window.
In the last pricing window, the IES MarketScan picked Petrosol, Engen, Sel, and Compass Oleum as OMCs with the highest-priced fuel on the market. Zen Petroleum, Benab Oil, Star Oil, and Goodness Oil were spotted as the OMCs with the least-priced fuel on the market at the end of the window.
Meanwhile, the price of fuel has gone up by more than 100% since the beginning of the year. Petrol and diesel sold at about ¢7.5 per litre at the beginning of 2022.
However, on Sunday, 30 October 20220, President Nana Akufo-Addo stated that as part of his mitigation measures, noted that the government is working to secure reliable and regular sources of affordable petroleum products for the Ghanaian market. “It is expected that this arrangement, when successful, coupled with a stable currency will halt the escalation of fuel prices and bring relief to us all,” he noted.
President Nana Akufo-Addo stated that he knew that the increasing cost of living is the number one concern for all of us. “It is driven by fast-escalating fuel prices at the pumps, which is caused by high crude oil prices on the world market and our depreciated currency. I know that this is putting intolerable pressure on families and businesses”.
The latest increment is expected to affect the prices of petroleum products in the country and thereby, increase the cost of living among Ghanaians.
