Chamber of Petroleum Consumers, COPEC has given reasons for recent fuel price increases in the country.
 In a statement signed by its Chief Executive Duncan Amoah, COPEC said "The two key indicators, ie international market prices and foreign exchange differentials are all likely to affect average pump prices of petroleum products by between 2% to 3% or (10p/Litre for both products ) in this second pricing window of September, 2021."
"This would likely translate to reviewed figures by the various Oil Marketing Companies (OMCs) as those selling at current prices for gasoline and gasoil at Ghc6.38 could be reviewed upwards to between Ghc6.45/-Ghc6.52/L for both Gasoline and Gasoil."
"The other OMCs whose current prices for both gasoline and gasoil hovering between Ghc5.88/Litre to Ghc6.20/Litre could be selling between Ghc6.05/L to Ghc6.38/L for both gasoline and gasoil in this second window of September."
"The surge in prices of petroleum products locally at the pump if left unchecked could likely continue to the end of 2021 as winter approaches."
Full stament below:Â
CHAMBER OF PETROLEUM CONSUMERS
Accra
16/09/2021
FUEL PRICES UP AGAIN FOR THE 2ND WINDOW OF SEPTEMBER, 2021
The anxiety surrounding reduced volumes of global supply figures is clearly leading to price escalations trumping the fears surrounding a lack of demand for the period.
Refined oil prices has seen a surge over the past few days rallying on to an all time high of above $720/metric for Gasoline and above $600/metric for gasoil as of Wednesday, 15th September, 2021 from a week earlier of Tuesday, 7th September, 2021 as reported by API indicating a six week high.
The price of crude (WTI) climbed 3.16% on Wednesday, reaching $72.69 by 10:00 a.m – up $2.23 per barrel on the day. Whiles Brent crude climbed 2.89%, up $2.13 per barrel, reaching $75.73.
The fear with respect to inadequate supply of petroleum products has seen some price hikes on the various international oil trading platforms.
Prices of finished products particularly Gasoline ( petrol ) has surged from $694/MT as of 13th September, 2021 to above $720/MT as of 16th September, 2021 representing 3.7% increment.
Whiles Gasoil ( diesel ) prices has seen an increase from $572/MT as of 12th September, 2021 to $604/MT as of 16th September, 2021 representing 5.6% increment.
Aside these international market prices of petroleum products, the Ghana Cedi has also seen a further depreciation in recent times to the other major trading currencies, especially the US Dollar.
Forward forecast figures for the Ghana cedi currently stands at around Ghc6.19/dollar from the previous rates of Ghc6.15/dollar as of 10th September representing 0.05% depreciation over the last week.
The two key indicators, ie international market prices and foreign exchange differentials are all likely to affect average pump prices of petroleum products by between 2% to 3% or (10p/Litre for both products ) in this second pricing window of September, 2021.
This would likely translate to reviewed figures by the various Oil Marketing Companies (OMCs) as those selling at current prices for gasoline and gasoil at Ghc6.38 could be reviewed upwards to between Ghc6.45/-Ghc6.52/L for both Gasoline and Gasoil.
The other OMCs whose current prices for both gasoline and gasoil hovering between Ghc5.88/Litre to Ghc6.20/Litre could be selling between Ghc6.05/L to Ghc6.38/L for both gasoline and gasoil in this second window of September.
The surge in prices of petroleum products locally at the pump if left unchecked could likely continue to the end of 2021 as winter approaches.
These marginal increases if left to continue would further worsen the cost of transportation, general goods and services to invariably affect all other productive sectors of the economy and economic life.
To this end, the Chamber once again reiterates the need for the following practical measures to be put in place immediately to forestall these increases;
1. An immediate removal of the price stabilisation and Recovery Levy of between 14-16p/Litre for diesel and petrol.
Or
b) The need for Authorities working through the Ministries of Finance and Energy to apply the already collected funds accruing to the Price Stabilization and Recovery Levy Fund to offset or stabilise the FOREX and price differentials from increasing on the price build up.
2. Consider reviewing of the UPPF to enable the various OMCs manage their own transportation across the country of the product which is likely to see this margin drop by at least 10p/Litre.
3. A further review downwards of other taxes such as the special petroleum tax ( SPT ) on petroleum products in the yet to be presented 2022 budget which is expected to to be presented in the last quarter of 2021.
4. An immediate and a thorough review of the entire petroleum price deregulation programme with the view to limiting the overbearing influence of both taxes and forex on pump prices.
Signed.
Duncan Amoah
Executive Secretary