Fuel price adjustment begins as OMCs sell petrol, diesel for GHS 13.50 and GHS 13.90
Several oil market companies (OMCs) in the country have initiated a series of price increases for petroleum products at retail pumps, signaling a shift in market dynamics.
Notably, Total Energies has elevated the price of petrol from ¢12.45 to ¢13.50, while diesel has risen to ¢13.90 from its previous mark of ¢12.45 at the start of the month.
Further pricing adjustments across the sector are anticipated on this day, August 16, 2023. This collective action by other Oil Marketing Companies (OMCs) underscores the evolving pricing landscape in the petroleum industry.
COPEC’s Projection of Fuel Price Surge Aligns with Market Developments
A recent declaration by the Chamber of Petroleum Consumers (COPEC) foreshadowed a fuel price surge of approximately 5.7% within the second pricing window of August. Duncan Amoah, the Executive Secretary of COPEC, articulated that this alteration is reflective of international market dynamics, with finished products witnessing an average price escalation of 11% for both petrol and diesel.
In addition to this, the cost of crude oil has surged by 6.79%, escalating from a mean price of $80.67/barrel to $86.15/barrel. This change comes in the backdrop of a slight 2.26% dip in the forex or Dollar exchange rate, which has lowered from an average of ¢11.7185 to ¢11.4538 per $1.
Price Adjustments and Global Trends: Impact on Specific Products
In light of these international trends, the COPEC statement elucidated the repercussions on specific products within the local market:
Petrol: With international prices rising from $898.55/MT to $965.58/MT, a significant 7.46% increment, the projected retail price of petrol is projected to reach GH₵12.97/L. This translates to an estimated increase of 4.37% over the current mean pump retail price of GH₵12.40/L. The predicted range for petrol prices lies between GH₵12.32/L and GH₵13.62/L, aligned with COPEC’s forecast with a margin of ±5%.
LPG (Liquefied Petroleum Gas): The international benchmark price of LPG has surged from $423.75 metric tonne to $547.79 metric tonne, marking an extensive 29.27% rise. As a result, the envisaged retail price for LPG is projected to average ¢12.30 per kilogramme. COPEC’s predicted range for LPG prices is positioned between ¢11.69/kg and ¢12.92 per kilogramme, maintaining the ±5% error margin.
The combined impact of global market shifts and the subsequent adjustments by industry players underscores the intricate interplay between international trends and local pricing mechanisms, affecting consumers and industry stakeholders alike.