Several Oil Marketing Companies (OMCs) in the country have raised the prices of petroleum products at the pumps, effective today, July 17, 2023.
Leading companies such as TotalEnergies, GOIL, and Shell have adjusted their prices, with diesel and petrol now selling at ¢12.45 per litre, marking an increase of 10 to 15 pesewas per litre compared to previous prices.
TotalEnergies and GOIL have provided differing explanations for the price hike. TotalEnergies cites a link to the cost price of the Bulk Oil Distribution Companies, while GOIL attributes the increase to the slight depreciation of the Ghanaian cedi against the dollar. These divergent justifications underscore the complexities of the fuel market and the multiple factors influencing pricing decisions.
Initial indications had suggested that prices would remain stable at the pumps starting from July 16, 2023. However, the unexpected increase has surpassed industry expectations and projections for the second pricing window of July 2023. This development could potentially impact inflation in the coming months, posing challenges for economic stability.
However, the National Petroleum Authority, responsible for regulating the petroleum sector, has expressed disagreement with the OMCs’ claims that the price increases are solely due to currency depreciation. An anonymous senior official from the authority disclosed that there have been no reports of cedi depreciation based on the information provided by banks.
In response to these developments, some Bulk Oil Distribution Companies (BDCs) have shed light on international market dynamics that have influenced pricing. The BDCs noted marginal changes in the international market prices of finished petroleum products during the pricing window from June 7 to July 11, 2023.
They also highlighted a slight increase in crude oil prices on the world market, attributed to production cuts by major oil-producing countries like Saudi Arabia and Russia.
Furthermore, the BDCs indicated that the price of liquefied petroleum gas (LPG) experienced a slight rise during this period, marking a shift from consistent decreases over the past five pricing windows.
Global petroleum product prices have been significantly affected by the uncertain global economic outlook, rising interest and inflation rates in the United States during the second quarter of 2023, and uncertainties surrounding the US debt ceiling bill.
These volatile market conditions have had an impact on local fuel prices, reflecting the interconnectedness of global and domestic factors in the fuel industry. As OMCs adjust their prices, consumers and industry stakeholders will closely monitor the implications for inflation and the broader economy.
Norvanreports