Fuel Prices Increase Again After Smooth August And September For Drivers

• Fuel prices have started increasing again following the first pricing window of October after sustained drops in September
• The recent price increments are being attributed to international developments, including rising tensions in the Middle East
• The Cedi’s depreciation against major trading currencies, such as the US dollar, has also contributed to the price increases

Fuel prices have started increasing again following the first pricing window of October.

This marks the first increase after four sustained declines in fuel prices since the first pricing window in August.

Citi News reported that Shell, which previously sold petrol at GH¢13.49 per litre in the second pricing window of September, is now retailing the product at GH¢13.79.

Diesel, which was also previously retailed at GHS 13.99 per litre, is now priced at GH¢14.35.

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The increment is being attributed to international developments, including rising tensions in the Middle East, the price of refined petroleum products such as petrol increasing by 1.09%, while that of diesel has declined by 1.67% as well as the Cedi’s depreciation against major trading currencies such as the US dollar.

Joy News reported that the cedi recorded a marginal appreciation of 0.93% against the US dollar, with the mid-rate rising to GH¢16.20 per dollar, up from GH¢16.35 per dollar last week.

The cedi has generally been at an average of GH¢16 to the US dollar on the retail market.

The Centre for Environmental Management and Sustainable Energy director, Benjamin Nsiah, suggested to YEN.com.gh that fuel prices are going up "because of the forex factor."

Nsiah previously noted that demand on the international market is being affected by the pivot to climate-friendly energies.

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Past fuel increases

YEN.com.gh reported uel prices last rose significantly in July, as predicted by industry observers like the Chamber for Petroleum Consumers, who urged the government to reduce LPG taxes or to subsidise its price.

Before June, fuel prices had dropped on the international market, but the Institute for Energy Security noted that the worsening cedi prevented Ghanaians from benefiting.

The Institute of Economic Affairs recently proposed that Ghana adopt the dollar to stabilise the economy as the cedi loses its purchasing power.

Source: YEN.com.gh