Prices of petrol and Liquefied Petroleum Gas (LPG) will remain fairly stable at the pumps from January 1, 2018, the National Petroleum Authority (NPA) has announced.
The NPA in a statement explained that, this is “in line with a drop in crude and petroleum prices on the world market, as well as stability in the exchange rate.”
The Authority added that, it had “activated the Price Stabilization and Recovery Levy to stem potential upward adjustment in the price of diesel.”
“The NPA wishes to assure the public of its commitment to monitor the situation in order to ensure the full benefit of the reduction is felt,” the statement further indicated.
Fuel prices hit all-year
In September 2017, it emerged that Ghanaians were paying more for petrol and diesel few months after enjoying fairly low prices.
Figures from the petroleum industry had shown that, prices of the two products at the various fuel stations had hit all time high, with petrol selling at an average of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre, as at the third week of September 2017.
The increase had been attributed to the marginal depreciation of the cedi, as well as increased global crude oil prices due to the floods in the US which affected production at major oil companies.
IES predicts no fuel price increase
The Institute of Energy Securities (IES ) had also predicted that consumers will not experience any significant price change at the pumps in the first pricing window of December 2017.
The Principal Research Analyst at the IES, Richmond Rockson, who made this prediction in an interview with Citi Business News explained that, despite the fast depreciation of the cedi against the dollar, the effect on petrol prices will be minimal.
“In the next pricing window which is the first pricing window in December, we foresee fuel prices remaining fairly stable, when I say fairly stable what I mean is that, we are not expecting any price change, and even if there will be a change in prices it won’t be significant”.
“The cedi is depreciating at a fast rate even though it is selling around 4 cedis 6 pesewas on the foreign exchange market. The average for the period is 4 cedis 48 pesewas, as compared to the previous average of 4 cedis 41 pesewas”
He explained that, the depreciation of the cedi would reflect in a price change of less than one percent for petrol, and therefore will be insignificant.
“Virtually a depreciation of 1.5 percent. Crude oil prices have remained fairly stable as well, and the difference is less than one percent,” he said.
NPA revises fuel prices downward through Price Stabilization levy
On December 1, the National Petroleum Authority (NPA) also directed all Oil Marketing Companies, and LPG Marketing Companies to use revised prices in the Price Stabilization and Recovery Levy Act to control recent price increases in petroleum products.
This followed a directive from the Ministry of Energy, raising concerns about the recent fluctuations in the prices of petroleum products due to strong political and economic influence from oil producing countries across the world.
In line with the directive, the Authority was expected to revise the cost of the levy which is one major component in the determination of petroleum prices.
By this, the Price Stabilization and Recovery Levy for petrol will remain at 12 pesewas per liter, while diesel and LPG are revised to 3 pesewas per liter from 10 pesewas per liter.
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