Some Oil Marketing Companies (OMCs) yesterday increased the prices of petroleum products at the pumps from this morning as predicted by the Institute for Energy Security (IES) last week.
Petrol and diesel prices are going for an average of GH¢18 and GH¢23 per litre, from the previous prices of GH¢15 and GH¢19 per litre respectively.
They attributed the significant increase in the price of fuel to the sharp depreciation of the cedi over the past two weeks.
Presently, the price of crude oil on the world market is relatively stable, selling at $94 per barrel.
But the price of fuel has gone up by more than 100 per cent since the beginning of the year. petrol and diesel sold at about GH¢7.5 per litre at the beginning of 2022.
IES had earlier stated that petrol and diesel prices were expected to go up further to GH¢18 and GH¢20 per litre by the middle of November 2022.
It also projected a further increase in the price of Liquefied Petroleum Gas despite a 1.43 per cent fall in the commodity on the world market.
Fuel prices went up twice in the month of October 2022, as some Oil Marketing Companies (OMCs) are selling petrol at GH¢16.94, whilst diesel is going for GH¢18.76.
“IES recognises the recent price increases by all OMCs monitored, and predicts that prices will see a further rise for all OMCs by end of the new pricing window on account of the significant depreciation of the cedi against the US dollar, and to some extent, the appreciable increase in gasoil price on the international fuel market”.
“In IES’ estimation, gasoil’s [diesel] price per litre is set to break the GH¢20.00 mark, with a gallon price possibly going for GH¢90.00 on the market. Gasoline [petrol] price may also inch close to GH¢18 per litre by mid-November 2022”, it stressed.
Again, it said “unfortunately, the 1.43 per cent fall in the price of LPG on the world market may 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.”
Per the IES Economic Desk’s analysis of the foreign exchange (forex) market over the last two weeks, it said the cedi, continues to lose stability against the US dollar in significant terms.
The cedi, it stated, depreciated by a whopping 32 per cent from the previous rate of GH¢10.89 to the current rate of GH¢14.42, to the US dollar.
BY TIMES REPORTER