Fuel Prices To Increase Towards Year's End: COPEC Cites Cedi Depreciation And Winter As Main Factors

• The Chamber of Petroleum Consumers expects 2023 to wind down with a general increase in fuel prices
• The chamber has said the expected prices are not likely to rise beyond GH¢14 at the pump
• COPEC director Duncan Amoah told YEN.com.gh that the unrest in Israel would also affect fuel prices marginally

Fuel prices are unlikely to continue to reduce as Ghanaians enter the last few months of 2023.

The Chamber of Petroleum Consumers (COPEC), however, said the increase in fuel prices is expected to be relatively bearable for Ghanaians.

The chamber’s director, Duncan Amoah, told YEN.com.gh that factors like the depreciation of the cedi and increased demand for fuel abroad because of winter are informing these projections.

“From what we see, it would be very difficult for anyone to suggest or expect that petroleum prices will dip in the last quarter of 2023.”

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“Once that happens, it means that demand for petroleum products will also spike. Once that happens, demand goes higher; prices are also likely to follow suit.”

Amoah also does not think fuel prices will exceed GH¢14 at the pump despite the expected increases.

“There would be some marginal increases here and there, but it shouldn’t be something that would affect the economy too badly,” he said.

Israel's tensions with Palestine

Amoah also noted that unrest in the Middle East contributes to the increase in fuel prices globally.

The Israeli onslaught on the Palestinian territory of Gaza began on October 7 when Hamas launched a military offensive that killed thousands in Israel, including many civilians.

However, he does not expect the conflict to affect Ghana significantly in the short term, “except something goes terribly wrong on the supply side.”

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Cedi loses more to the dollar

The Ghana Cedi is now going for GH¢12.10 against the US dollar on the forex or retail market.

Reports indicate that demand for the dollar has been high ahead of the Christmas season at forex bureaus.

The pressure on the Ghana Cedi is expected to ease if the $600 million from the International Monetary Fund arrives.

Bank of Ghana urges businesses to stop pricing in dollars

Meanwhile, YEN.com.gh reported that the Bank of Ghana warned the business community in Ghana against pricing and doing other related activities in dollars and other foreign currencies.

The central bank said transacting in foreign currency in Ghana without authorisation is against the law.

The BoG said in a statement that it is collaborating with law enforcement agencies to continue the clampdown on businesses flouting the law.

Source: YEN.com.gh