Fuel prices have shot up significantly even before the fortnight review of petroleum products on Sunday, October 30, 2022 by the Oil Marketing Companies (OMC).
This is happening despite the global market for crude oil remaining constant. Although the price of crude oil is currently around $90 per barrel, the sharp devaluation of the cedi has caused fuel prices to skyrocket.
Petrosol is currently selling petrol at ¢17.48 per litre, while Engen is charging ¢17.54 per litre.
A litre of diesel is now available from Petrosol and Engen for ¢19.89 and ¢19.44, respectively.
All other OMCs will raise their petroleum product prices before October 31, 2022, with the sole exception of GOIL.
According to an industry analyst, the Bulk Oil Distribution Companies have been selling to them at the going market rate, the OMCs can no longer wait for the biweekly review of petroleum product prices.
The Ghana Private Road Transport Union (GPRTU) has already stated that it plans to raise transportation costs by 19% beginning on Saturday, October 29, 2022.
The cost of petroleum is rising, which will increase inflation. This will eventually have an impact on interest rates and borrowing costs.
After the most recent price review on October 16, 2022, fuel prices increased between 7% to 12%.
The Institute for Energy Security (IES) attributes this to rising product prices on the global market as well as a sharp decrease in the value of local currencies relative to the US dollar or American greenback.
Anita Zuuri
Annie is an entertainment and lifestyle writer. She enjoys reading and writing about music, celebrities and their lifestyles, food, cars and tech.