Fuel prices have shot up significantly even before the fortnight review of petroleum products on Sunday, October 30, 2022 by the Oil Marketing Companies.
This is coming despite a stable price of crude oil on the world market. Crude oil is hovering around $90 per barrel, but the significant depreciation of the cedi has pushed fuel prices very high.
Checks by Joy Business indicate that Petrosol and Engen have increased prices for both petrol and diesel.
Whilst Petrosol is now selling petrol for ¢17.48 per liter, Engen’s litre of petrol is going for ¢17.54.
Petrosol and Engen are also now selling a litre of diesel for ¢19.89 and ¢19.44 respectively.
Joy Business understands that all the other OMCs with the exception of GOIL will increase their prices of petroleum products before October 31, 2022.
An industry analyst told Joy Business that the OMCs can no longer wait for the bi-weekly review of prices of petroleum products because the Bulk Oil Distribution Companies have been selling to them at the current market rate.
Already, the Ghana Private Road Transport Union (GPRTU) has indicated its intention of increasing transport fares, effective Saturday, October 29, 2022 by 19%.
The increasing fuel prices will push inflation up. This will subsequently influence interest rates and the cost of borrowing.
Fuel prices went up between 7% and 12% on October 16, 2022
Fuel prices went up between 7% and 12% in the last price review on October 16, 2022.
According to the Institute for Energy Security (IES), this ws due to the increases in price of the products on the international market, and the significant decline in the value of the local currency against the American greenback or US dollar.