Falling Cedi, Russia-Ukraine War Pushes Fuel Prices Up, Ghanaians Soon Buy Diesel Above GH¢10 Per Litre

Falling Cedi, Russia-Ukraine War Pushes Fuel Prices Up, Ghanaians Soon Buy Diesel Above GH¢10 Per Litre

  • The depreciation of the cedi and the Russian-Ukraine war is taking on pump prices in Ghana.
  • According to energy think tank COPEC-GH, prices of diesel and petrol will go above GH¢10 per litre from tomorrow.
  • The price of goods and services are also expected to rise significantly, driving Ghana's year-on-year inflation up.

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Petrol and diesel prices at the pumps are set to go through the roof in Ghana from tomorrow, March 16, 2022, a situation triggered in no small measure by the falling cedi.

Also, calculated sanctions on Russia by the US and its allies over its widely condemned incursion on Ukraine have also been fingered as a key factor in the hike in fuel price in Ghana.

The fall of the cedi against the US dollar, according to energy think tank, Chamber of Petroleum Consumers Ghana (COPEC-GH) has triggered a sharp rise in fuel prices for the next pricing window.

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Fuel price increase
Ghanaians soon buy diesel above GH¢10 per litre says a recent report. Source: UGC
Source: Original

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Last week, Energy Consultant, Dr Yussif Sulemana, predicted that the incursion into Ukraine by Russia could push crude prices to record highs as sanctions on Russia trigger scarcity.

Dr Sulemana explained that if the war between Russia and Ukraine persists, global oil prices will go above $120 “because Russia is a force to reckon with.”

“Russia is amongst the three leading players in terms of oil production in the global basket,” Dr Sulemana said.

But on Monday, COPEC-GH released a statement that lends credence to Dr Sulemana’s fears.

COPEC-GH said in a statement on Monday, March 14, 2022, that while the global crude price was skyrocketing, Ghana’s depreciating cedi worsens the situation.

“The petroleum price indicators as published by the NPA shows that the price of Gasoil (diesel) will increase by 30.41% from Ghc8.22 per litre in this current window to Ghc10.721 per litre beginning 16th March, 2022 and ex-pump prices of Gasoline (petrol) will increase by 18.25% from Ghc8.22 per litre to Ghc9.727 per litre within the same period,” COPEC-GH said in the statement.

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This simply means that a gallon of fuel will increase significantly from GH¢37 per gallon to GH¢45.99 beginning Wednesday, March 16, 2022.

COPEC-GH’s analysis also predicts that ex-pump prices of LPG will increase by 23% from the current GH¢9.8 per kg to GH¢12.04 per kg in form tomorrow.

This significant increase in fuel prices is expected to further push up Ghana’s year-on-year inflation rate in the short-term – affecting the price of both food and non-food inflation in the CPI basket.

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The study by the Center for Economics Finance and Inequality Studies revealed that the over 80% of respondents against the tax want the Electronic Transaction Levy, which is currently before Parliament, totally canceled.

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