The price of petrol has once again surged, climbing from an average of GH¢14.99 two weeks ago to a range between GH¢15.22 and GH¢15.40 effective today May 3, 2024, depending on the fuel station.
Conversely, diesel has experienced a slight dip, dropping from GH¢14.70 to approximately GH¢14.65.
Despite the government’s assertion that its Gold for Oil policy would stabilize fuel prices, the cost of petrol has continued to rise at nearly every pricing window over the past two months.
The substantial increase in petrol prices is largely attributed to the weakening value of the cedi. From January to April of this year, the cedi depreciated by over 13.35%, with April alone witnessing a depreciation exceeding 3.6% on the retail market.
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Consequently, even at the same international price, fuel costs more in Ghana due to the deteriorating exchange rate.
Since the beginning of the year, the price of petrol has surged by nearly 40%, rising from about GH¢11.24 to its current level. This spike has led to increases in transport fares, the prices of goods and services, and a rise in inflation from 23.5% in January to 25.8% in March.
With corporate organizations driving up demand for the dollar, outpacing its supply, market analysts predict further depreciation of the cedi until around June, with adverse effects on fuel prices.
Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC), anticipates an imminent escalation in fuel prices, projecting that it may soon surpass GH¢16 or GH¢17 per litre.
On April 3, 2024, the National Petroleum Authority (NPA) issued a directive to stakeholders in the oil marketing and distribution sector, mandating additional charges: 16 pesewas per litre for petrol, 14 pesewas per litre for diesel, and 14 pesewas for every kilogram of Liquefied Petroleum Gas (LPG).
This directive contributed to a previous increase in fuel prices about a month ago, before the subsequent rises driven primarily by the declining value of the local currency.
Meanwhile, the NPA’s recent directive introducing price floors for the downstream petroleum sector aims to prevent fuel stations from selling their products at prices lower than the indicative prices.
Analysts argue that this directive works against consumers’ interests, as it largely eliminates price competition that existed among oil marketing companies.
