The Chamber of Petroleum Consumers (COPEC) has predicted an increase in fuel prices in Ghana in the coming days as we near the end of the year.
Speaking with the media, Executive Secretary of COPEC, Duncan Amoah, said consumers should expect about five percent increase this week adding that the Chamber indicates that the slight depreciation of the cedi among other things, is a reason for this anticipated upward adjustment.
The Chamber says it believes the increment is likely to be seen in the second pricing window in December 2020.
Mr. Duncan Amoah disclosed that, there is increasing pressure on the various oil marketing companies and over the past few days, looking at the international benchmarks, prices have gone up so Bulk Oil Distribution Companies (BDCs) prices have gone up.
“And then again, the cedi is also struggling against the dollar largely. What that means is that prices naturally would have had to go up at the pumps.
“Then again, they are also considerate of Ghanaians, the holiday Christmas approaching. We believe strongly that they may not be able to absorb the numbers except and until the government decides to ease off the price stabilization and recovery margin at this time. If that is not done it is quite likely that we may see increases in fuel prices between 3 and 5 percent by Thursday this week.”
Earlier in the month, the Institute for Energy Security (IES) also predicted a 3% – 5% increase in both petrol and diesel prices at the pumps within the first 2 weeks of December, which makes up the first pricing window of the month.
Explaining the circumstances surrounding the increment, the energy think tank attributed the expected jump in fuel prices to a number of factors including a loosening of restrictions in parts of Europe as well as the hopes of an extension of the period for production cuts by OPEC-plus countries to at least the first quarter of 2021.
Touching also on their analysis on the fuel prices, a research analyst with the institute, Fritz Moses disclosed that the predicted increase is also as a result of developments around the vaccine.
“Over the last 2 weeks we have seen prices of Brent crude rising on the international market as a result of the developments around the vaccine, the US elections as well as expected production cuts by OPEC+ countries.
“On the impact at the pumps in Ghana, we hope prices per our projections do not go beyond GH₵4.80 per liter for petrol and diesel for the top three OMC’s in Ghana, that is Goil, Total and Shell.”
With regards to transport fares, the IES said that, it is not expecting transportation fares to increase as a result of the increase in fuel prices.
Touching on the local fuel market performance for the last window of November, the IES indicated that, prices of fuel on the local market remained stable and prices of petroleum products within the second Pricing-window of November 2020 saw majority of Oil Marketing Companies (OMCs) maintaining prices of Gasoline and Gasoil.
