Fuel Price Increase: Ghanaians To Pay Up To 13% More For Petrol And Diesel For Next Two Weeks

• Fuel prices have been projected to rise by between 7% and 13% at the various OMCs from January 31, 2023
• According to the Institute for Energy Security, the price increase will last for two weeks and has been driven by the cedi's depreciation and increases in the commodity on the international market
• A significant increase in petrol and diesel typically increases the cost of transportation which in turn results in a high inflation figure and higher cost of living

Fuel prices have been projected to go up significantly at the pump by between 7% and 13% between Tuesday, January 31 and February 16, 2023.

According to a data-driven forecast by the Institution of Energy Security (IES), its monitoring of various Oil Marketing Companies for the second and final pricing window in January saw the national average price per litre of petrol increased to GH¢13.58 from GH¢12.54 and diesel from GH¢14.40 to GH¢15.36.

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The energy think tank also disclosed that the national average price of LPG remains stable at GH¢12.69 per kilogram.

"These changes were largely as a result of an increase in prices of the commodities on the international fuel market, in addition to the depreciation of the Ghana Cedi against the U.S. dollar," the IES said in a press release issued on Sunday, January 29, 2023.

IES said after scanning the market, it found that GOIL, ShelllVivo, Total, Engen, Nasona, and Puma are the OMCs with the highest-priced fuels on the market.

Also, OMCs such as Benab, Allied, Zen Petroleum, Star Oil and Goodness, have the least-priced fuels on the market.

Fuel price increases may worsen inflation in Ghana

Ghana's current inflation of 51.4% for December from 50.3% in November 2022 is likely to go even climb higher in January 2023 due to the fuel price hikes and the cedi's depreciation against the dollar.

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This is because in December 2022, increases in LPG, petrol, diesel and other fuels played a significant role in the increase in inflation.

In Ghana, fuel price increases typically increase transport fares, which in turn causes the prices of goods and services to rise on the market.

Petrol sold for GH¢12.40, diesel for GH¢15.85 two weeks ago

Two weeks ago, on January 3, 2023, YEN.com.gh reported that fuel prices at the various pumps across the country reduced impressively.

The prices saw a downward adjustment over the past few weeks with petrol selling at GH¢12.40 and diesel going for GH¢15.85.

The reduction reflected the downward trend of oil prices on the global market as well as the appreciation of the cedi against the dollar at the time.

Source: YEN.com.gh