Motorists, transport operators and businesses should prepare for another increase in fuel costs from August 1, as industry projections point to higher petrol, diesel and LPG prices in the first pricing window of the month.
The Chamber of Oil Marketing Companies (COMAC) projects petrol prices could increase by about 7.58%, while diesel is expected to record the steepest increase of about 12.50%. LPG prices are also projected to rise by about 4.13%.
If the projections materialise, consumers will pay more at the pumps, adding to transportation and production costs for businesses.
The increases could also reignite pressure for transport fare adjustments and contribute to higher operating costs across several sectors of the economy.
COMAC attributes the expected increases to the escalating conflict between the United States and Iran, which has pushed up international crude oil and refined petroleum product prices amid concerns over supply disruptions, higher freight costs and security risks along the Strait of Hormuz.
Average crude oil prices rose by 23.25% in late July, increasing from US$71.90 per barrel to US$88.62 per barrel. Refined petroleum products also recorded significant gains, with diesel increasing by 24.84%, petrol by 12.58% and LPG by 12.24%.
The projected increases are also being supported by a slight depreciation of the Ghana cedi. The local currency weakened by 1.41% against the US dollar during the pricing period, moving from GH¢11.50 to GH¢11.66 to the dollar, increasing the cost of importing petroleum products.
The projections come after the National Petroleum Authority released higher price floors for the first pricing window of August.
The petrol price floor has been set at GH¢14.53 per litre, representing a 9.41% increase from the previous pricing window. Diesel’s price floor rose by 18.26% to GH¢16.97 per litre, while LPG increased by 8.54% to GH¢11.06 per kilogram.
The price floor represents the minimum price at which oil marketing companies and LPG marketing companies are expected to retail petroleum products during a pricing window.
Fuel prices have been on an upward trend in recent weeks, with diesel retailing at close to GH¢18 per litre at some filling stations, while petrol is approaching GH¢16 per litre at selected outlets.
The latest projections are likely to revive concerns within the transport sector. Earlier, the Ghana Private Road Transport Union threatened a 30% increase in transport fares, citing rising fuel costs and declining profit margins before suspending the planned adjustment.
Another round of fuel price increases could renew calls for fare hikes, potentially raising commuting costs for households and increasing inflationary pressures across the economy.
Source: Citinewsroom
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