Fuel prices: Petrol projected to rise 9.63%, diesel 6.97% – COMAC
The Chamber of Oil Marketing Companies (COMAC) has projected a 9.63% increase in petrol prices and a 6.97% rise in diesel prices from Wednesday, September 16, when the second pricing window of September begins.
LPG prices are also expected to increase by 3.22%, according to COMAC’s latest pricing outlook, with the projected adjustments reflecting increases in global crude oil and refined petroleum product prices.
Despite the expected increases, COMAC noted that the government-industry GH¢2 per litre intervention on diesel will continue to cushion consumers against the full impact of the projected rise.
Based on COMAC’s cash-purchase projected ex-pump prices, petrol could sell at GH¢17.23 per litre, while diesel is projected to reach GH¢18.35 per litre. LPG could also sell at GH¢16.66 per kilogramme.
NPA data seen by Citi Business News shows that the minimum price for petrol has been set at GH¢16 per litre, while diesel has a floor price of GH¢16.77 per litre. The minimum price for LPG has also been increased to GH¢10.97 per kilogramme.
The latest floors represent increases across all three products compared with the first pricing window of September. Petrol has risen by GH¢1.47 per litre from GH¢14.53, while diesel has increased by GH¢1.17 from GH¢15.60. The LPG floor has gone up marginally by GH¢0.12 per kilogramme from GH¢10.85.
However, the NPA price floors do not necessarily represent the final prices consumers will pay at the pumps. Under the Petroleum Product Pricing Guidelines, the floors exclude premiums charged by International Oil Trading Companies, operating margins of Bulk Import, Distribution and Export Companies, as well as marketers’ and dealers’ margins.
The upward pressure on prices follows a sharp increase in global crude oil prices. Average crude oil prices rose by 12.29% to US$104.01 per barrel for the September 16 pricing window, crossing the US$100 mark for the first time since May.
The rise was attributed to vessel attacks in the Gulf and tightening supply following Saudi Arabia’s closure of the East-West crude oil pipeline, which has put about four million barrels per day of supply at risk amid renewed U.S.-Iran tensions and other geopolitical pressures.
Refined petroleum products also recorded significant increases, with petrol rising by 13.21%, diesel by 7.50% and LPG by 16.42%.
Meanwhile, the cedi depreciated by 1.01% to GH¢11.4849 to the US dollar based on average bank rates between August 27 and September 11, adding further pressure to the pricing outlook.
Against the expected increases, the Chamber of Petroleum Consumers (COPEC) is proposing a GH¢1 per litre relief on petrol while maintaining the existing GH¢2 per litre relief on diesel until international petroleum benchmarks return to more normal levels.
