Fuel prices: Petrol projected to rise by 5%, diesel by 22% from October 1 – COPEC

Petrol and diesel prices are expected to increase significantly from Thursday, October 1, following sharp increases in global petroleum benchmark prices and recent depreciation of the cedi, the Chamber of Petroleum Consumers (COPEC) has projected.

Speaking to ModernGhana News on the sidelines of a media training organised by the Chamber of Oil Marketing Companies (COMAC) in Accra on Tuesday, September 29, the Head of Research at COPEC, Paul Ofori, said the two key factors influencing petroleum prices are international benchmark prices and the cedi-dollar exchange rate.

He said the cedi lost 1.2% against the dollar last week, while benchmark prices for petrol, diesel and Liquefied Petroleum Gas (LPG) recorded significant increases on the international market.

“So there are two main parameters that determine pump prices: the global benchmark prices, and then your cedi-dollar relationship," he explained.

Mr Ofori said petrol prices could rise by more than 5% from the current average price if the government does not intervene.

He said petrol, which is currently selling at an average of about GH¢16.90 per litre, could rise to between GH¢16.84 and GH¢18.75 per litre under the projected conditions.

For diesel, COPEC is projecting a much higher increase of about 22% if there is no government intervention, based on an average current market price of approximately GH¢18.50 per litre.

Mr Ofori, however, said government intervention could reduce the expected increase in diesel prices to between 11% and 12%.

“If government intervenes, then likely the projection will go down, and so we are looking at a maximum of 12% increment across the board in terms of diesel prices," he noted.

He said diesel could consequently sell between GH¢18 and GH¢21 per litre from October 1, depending on developments in the international market and whether government intervenes.

According to Mr Ofori, petrol prices on the international market have increased from about US$1,001 per metric tonne to as high as US$1,250, with prices in some cases reaching US$1,300 per metric tonne.

He added that diesel prices had also increased from about US$1,004 to approximately US$1,524 per metric tonne, representing an increase of about 8%, while LPG prices had risen by about 7%.

“If that should stand, it means that the consumer has to cough up a lot more in order to buy almost the same quantity of fuel they have been buying,” he said.