Petrol and diesel may sell at ¢7 per liter each for the first time, beginning this weekend.

This follows a projected 40 pesewas per litre increment in petroleum products by the Institute for Energy Security.

According to the energy think tank, a 7.42% increase in the price of Brent crude since the beginning of the year and 0.3% depreciation of the local currency against the dollar will trigger that.

In a statement, it said “on the back of the 7.42% increase in the price of Brent crude, the 9.46% increase in price of gasoline, the 8.52% increase in gasoil price and the 0.3% depreciation of the local currency against the US dollar; the Institute for Energy Security (IES) informs consumers to remain expectant of a further increase in fuel prices at the pumps, between 30 pesewas to 40 pesewas per litre”.

“The imminent price increases, it said may force some Oil Marketing Companies (OMCs) to sell gasoline and gasoil at ¢7per litre at the pumps for the first time”, it explained.

Oil prices rose to $78.98 per barrel on 3rd January, 2022 and subsequently went up to over $84 per barrel in less than 10 days, representing a rise of about 6.7%.

Interestingly, the IES, said the oil market has been bereft of any major market volatilities in the just ended pricing window as had been the case in windows past.

Of all the major happenings, the OPEC+ meeting held on the 4th January 2022 stands out as the most conspicuous industry event in the just ended window that had the propensity of shaking up the market. The meeting concluded with a resolution to stick to the planned output of 400,000 barrels per day.

Prices of petroleum products went up marginally from January 1st

Prices of fuel at local pumps in Ghana saw an increment within the window under assessment. Petroleum products prices per litre rose from ¢6.50 on average at most pumps to reach ¢6.70 within the window under review.

The increase in prices was occasioned by the rise in prices on the international market despite government’s extension of the suspension of the Price Stabilization and Recovery Levy (PSRL) on the petroleum price build-up (PBU). Majority of the Oil Marketing Companies increased their prices at the pump by 2% to 3%. The current national average price for both products is pegged at ¢6.70 per litre, representing 3% increase over the previous window’s.

OMCs with low and high fuel prices

Star Oil, Benab Oil, PetroSankofa, Goodness Oil and Top Oil were the OMcs with the least-priced petrole and diesel on the local market for the pricing-window under review.

Pump prices of these OMCs ranged between ¢6.52 and ¢6.43 per litre for both products.

Conversely, the OMCs with the highest priced products per litre were Total, Shell, Engen, Shell (Vivo) and Puma, selling between ¢6.75 and ¢6.85 per litre for the two major liquid fuels.