Prices of petroleum products will from Wednesday, March 16 experience a significant surge as consumers are expected to pay ¢11 per litre.
The Bulk Oil Distributors have blamed the situation on the volatility on the market as well as the rising cost of crude on the international market.
According to the Chief Executive, Senyo Hosi, the cedi which is depreciating among other major trading currencies is also a factor for the rise in the price of the commodities.
Russia’s invasion of Ukraine has seen oil prices rise to their highest level in more than a decade and is on the verge of hitting new record, with crude prices predicted to reach as high as 185 dollars a barrel.
In its projections for the March 2022 Second Pricing Window, which will take effect from March 16, 2022, to March 31, 2022, the Institute for Energy Security (IES) has said the price of Liquefied Petroleum Gas (LPG) will go up by 3 per cent whereas petrol and diesel would go up by 5 per cent and 9 per cent respectively.
If the IES’ projections should materialise, then petrol would sell at an average ¢8.60 per litre while diesel would trade at an average ¢8.90 per litre by the end of the month.
Meanwhile, the National Petroleum Authority (NPA) says the Oil Marketing Companies are not adjusting their pump prices beyond the indicative prices provided to the authority.
Currently, petrol and diesel are selling at an average of ¢8.2 per litre at the pumps.
Before March 1, 2022, petrol and diesel traded at an average ¢7.50 per litre, representing an increment of 8.6 per cent in the just-ended pricing window.
In the March, 2022 First Pricing Window, the IES found that the Cedi depreciated by 4.82 per cent to close at GH¢7.17 to the Dollar from the earlier window’s rate of GH¢6.85 to $1.
With respect to the cost of fuel on the international market, the Institute found that the price of the international benchmark Brent Crude rose to 14-year highs within the period under assessment, reaching an average of $112.87 per barrel and representing an increase of 19.95 per cent over the previous window’s average price of $94.10 per barrel.