The Chamber of Petroleum Consumers Ghana (COPEC) has expressed disappointment in the National Petroleum Authority (NPA) for increasing the Unified Petroleum Price Fund (UPPF) margin.
According to the chamber, the decision has led to a cascading effect on fuel prices at the pumps, burdening the public.
The NPA in a circular directed the various industry players to increase the margin by GH₵0.05 on every litre of fuel in the Price Build Up for petroleum products from June 1, 2024. Petrol and diesel prices went up at some service station to GH₵14.84 a litre on Tuesday June 4, 2024.
Reacting to the development, the Executive Secretary of COPEC, Duncan Amoah, said consumers are already overburdened by the high prices of petroleum products at the pumps due to the cedi depreciation.
“These things simply continue to add onto the pressure that fuel prices continue to face in the country. It is quite unfortunate that we continue to add on at a time that we should be thinking of reducing prices for our people. Prices simply would end up going up because we have done an increase in some of the margins just a few days ago, not good enough”, he said.
Mr. Amoah pointed out that fuel prices should have gone down since crude oil prices on the world market have witnessed a significant decline in recent times.
He argued that the decision to increase the margin is bad since it erodes the gains that consumers should have enjoyed.
“Indeed fuel prices should have declined in the last window and this window. The cedi’s performance has been largely blamed for the prices still being where they are and very high. UPPF used to be around 45 pesewas a litre but unfortunately we’ve had to increase it and increase it. Currently, we’ve also adjusted it to now 90 pesewas a litre”, he lamented.
Criticizing the government, Dr. Amoah said the duty of policymakers is not to pass on cost to consumers, burdening the public with fuel price increases.
Prices go up
Some oil marketing companies have already started increasing prices of petroleum products at the pumps.
Shell is selling a litre of petrol and diesel at GH₵14.84.
Market leader GOIL is however selling a litre of petrol for GH₵14.60, from its old price of GH₵14.55. Diesel is going for GH₵14.75, up from the previous price of GH₵14.70. GOIL’s price is lower compared to Shell.
Persons close to GOIL have told JOYBUSINESS that the adjustment is due to the GH₵0.05 increase in the Unified Petroleum Price Fund (UPPF) margin. The National Petroleum Authority has directed industry players to increase the margin from June 1, 2024.
Some oil marketing companies have explained that prices at the pumps would have remained unchanged if the UPPF margin had not gone up.
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