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Fuel Prices Set to Increase, Impacting Cost of Food

Fuel prices to go up from July 1, with potential negative impact on prices of food.

From July 1, prices of petroleum products are expected to rise, as announced by the Chamber for Petroleum Consumers (COPEC). This anticipated increase is attributed to the recent depreciation of the cedi against the dollar, with the exchange rate moving from $1: GH¢14.4788 to $1: GH¢15.2779, marking a decrease of 1.89%.

COPEC forecasts a 2.17% hike in petrol prices, expected to climb from GH¢14.17 to GH¢15.20 per litre. Diesel prices are also projected to increase to GH¢15.21 per litre, while liquefied petroleum gas (LPG) is anticipated to be priced between GH¢13.24 and GH¢14.64 per kilogram.

These increases in fuel costs will coincide with rises in water and electricity tariffs. The expected price hikes are likely to impact transportation significantly, particularly affecting haulage trucks used for distributing goods.

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In the past, spikes in fuel prices have notably affected transport costs, contributing to a 10.6% month-on-month inflation in the transport sector recorded in May. Another increase in fuel prices could exacerbate an already challenging situation.

Analysts are concerned that these hikes will also drive up the cost of agricultural produce and food items, potentially negating any benefits of lower food prices during the harvest season.

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