Fuel Price Increase: Further Hikes In Cost Predicted By IES In Coming Days

Fuel Price Increase: Further Hikes In Cost Predicted By IES In Coming Days

  • Even though fuel prices went up marginally last week, the cost per litre of the commodity will go up again this week, according to an energy think tank
  • The Institute for Energy Security (IES) has said even though the cedi has stabilised against the dollar, the international price of crude will drive ex-pump prices in Ghana
  • Pockets of shortages of petroleum products across the country have also contributed to the price increase in the second pricing window of May 2022

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The Institute for Energy Security (IES), a think tank, has said its analysis points to a further hike in the cost per litre of fuel this week, even though there have already been marginal price increases.

According to available data, as of May 09, 2022, fuel prices stood at almost GH¢11 per litre, a marginal increase in price from the week prior.

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Fuel Price Increase
A vendor counts Ghana cedi banknotes at a market in Accra. Source: Getty Images.
Source: Getty Images

In its latest analysis of the market for the second pricing window, IES has said the upward revision of petrol, diesel and LPG prices this week will be caused by rising international fuel prices, and the growing pockets of fuel shortages across the country, although the cedi appreciated against the dollar in the past two weeks.

“For the rest of May 2022, the 7.64% rise in Gasoline (petrol) price, 1.90% rise in Gasoil (diesel) price, and the 6.05% rise in the price of LPG on the international market will push local market prices higher”, the energy think tank said in a statement.

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In the first pricing window for this month, i.e. May 1 to 16, 2022, the price of fuel saw increases in the local market, in response to the rise in prices on the international market.

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Most Oil Marketing Companies (OMCs) increased the price of diesel by at least 5% to reach GH¢11 plus per litre at their pumps. This is an increase of 7.34% over the previous price of ¢10.36 per litre, said IES.

Meanwhile, the international Benchmark Brent price stayed beyond the $100 per barrel mark in this window. The lowest prices were recorded on May 10, 2022, at $102.46 per barrel.

The price averaged $107.63 per barrel, representing a 0.77% increase over the previous window’s average price of $106.81 per barrel.

Since January 03, 2022, the price of petroleum products in Ghana has increased by approximately 45.7%. The numerous taxes on a litre of petrol remains a key driver of ex-pump prices in Ghana.

Akufo-Addo Justifies Taxes As Sacrifice Ghanaians Must Make For National Development

Meanwhile, YEN.com.gh reported in a separate story that President Nana Akufo-Addo has justified what many have described as the numerous taxes imposed on Ghanaians as the sacrifice needed for national development.

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The president said while paying taxes are painful, they are important for the success of the shared effort to lift Ghana from the present economic challenges.

“All of these are the sacrifices that are required for us to make it, and we have to be prepared to do so. So, let us understand that we have to rise to the challenge and do it for ourselves,” Citi News quoted the president in a report on Friday, May 13, 2022.

Source: YEN.com.gh

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