Fuel prices have witnessed a steady rise since the beginning of the year. The trend has raised an unnerving sentiment amongst consumers.
As of December 2020, fuel prices that averaged about GH¢4.7 per litre have currently soared to an average of about GH¢5.4 per litre. The Chamber of Petroleum Consumers (COPEC) has recently indicated that there has been an 11% percentage increase in fuel prices within the last two months of 2021. With the trend of increasing fuel prices, what can Ghanaians expect?
Below is a list of pump prices at major OMCs and the percentage change in prices over the last three month period from January 2021.
The table above clearly depicts the steady rise in fuel price from the beginning of the year till date. Based on these current price increases which have been tied to the rise in global oil prices, the question remains, will fuel prices continue on their upward trajectory or will they fall in the coming months.
Fuel Prices in the second pricing window of April
The Institute for Energy Security (IES) is, however, projecting a decrease in the price of diesel but a stable price for gasoline in the second pricing window of April 2021 due to a decrease in the price of the International Benchmark- Brent crude and the 0.17% depreciation of the Ghanaian Cedi against the US Dollar.
“With the 2.40% decrease in price of the International Benchmark- Brent crude, the 2.65% decrease in price of Gasoil, the 1.83% increase in Gasoline price and the 0.17% depreciation of the local currency against the US Dollar; the Institute for Energy Security (IES) projects for price of gasoil (diesel) on the domestic market at the various pumps to reduce,” part of a press release from the Energy think-tank said.
“With the aim of increasing market share however, the various OMC’s may decide to reduce the price of both products,” the press released further revealed.
Given this projection by the IES, Ghanaians can expect to enjoy stable fuel prices at the pump in the second pricing window of April. Nonetheless, with the expected levy to be imposed in the coming months, fuel prices will increase marginally at the pump.
New Levies and fuel prices
In the 2021 budget, presented by Parliamentary Affairs Minister, Osei Kyei-Mensah-Bonsu on Friday 12th March, new levies were proposed to parliament which according to the Parliamentary Affairs Minister will increase fuel at the pump by 5.7%. This will mean that Ghanaians will be paying for more fuel at the pump in the coming months hence should expect to pay an average of GH¢5.8 per litre of fuel and GH¢21.99 for a gallon of fuel.
The new levies included a10 pesewas Sanitation and Pollution Levy as well as a 20 pesewas levy for charges on the country’s excess power capacity subject to parliamentary approval.
With fuel prices on the rise, transport and food prices may also experience a rise as is typically the case in the country.
The Executive Secretary of COPEC, Duncan Amoah has however called on parliament to kick against the proposed levies on petroleum products to ensure that Ghanaians are not overwhelmed.