Fuel prices in Ghana are set to rise in the upcoming weeks, as the country grapples with mounting global market pressures.
The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, explained that the projected increases are driven by external market forces, over which Ghana has limited control.
According to recent reports, petrol, diesel, and liquefied petroleum gas (LPG) are expected to increase by 1.97%, 2.73%, and 3.26%, respectively, in the next pricing window.
Mr. Amoah stated that the global market dynamics, including price hikes in international petroleum products, have been significant contributors to the rise in fuel prices. “The international market has gone up slightly,” he explained, noting a 4% increase in petrol prices, 5% in diesel, and 6% for LPG. These global price movements are set to directly affect the cost of fuel at the pumps in Ghana.
However, the external market forces are not the only factors at play. The depreciation of the Ghanaian cedi against major trading currencies, particularly the US dollar, is also exacerbating the situation. Mr. Amoah pointed out that the cedi has weakened by approximately GH¢1 in recent weeks, further compounding the effects of rising global oil prices. This combination of factors has led to an inevitable increase in fuel costs, with Ghanaians expected to pay more at the pump come Monday.
Analysts have warned that the depreciation of the cedi is a key element in the fuel price forecast. The weaker cedi means that importers of fuel will face higher costs when converting their foreign currency into Ghanaian cedis, leading to higher fuel prices. With global oil prices on the rise and the local currency continuing to lose value, Ghanaians are bracing for further price hikes in the near future.
The rising cost of fuel comes at a time when many Ghanaians are already feeling the pressure of high living costs. Transportation and daily commuting are likely to become more expensive, with a direct impact on businesses and the overall economy.
