Fuel prices to rise as cedi weakens, crude prices climb

Fuel prices are poised for a possible rise with industry projections pointing to increases across petrol, diesel, and LPG in the next pricing window, driven by cedi depreciation and rising international petroleum prices, potentially ending January’s streak of declines.

If implemented, the adjustments will mark the first fuel price hike this year, following consistent reductions recorded across pump prices last month.

Projections from the Chamber of Oil Marketing Companies (COMAC) indicate that petrol could rise by about 2.10%, diesel by 5.10%, and LPG by 1.09%, largely on the back of higher global petroleum product prices and a weaker cedi.

Within the current pricing window, petrol prices on the international market have already increased by 2.12%, diesel by 6.73% and LPG by 3.66%, reflecting the upward movement in crude oil prices, which surged significantly in early February from $62.50 per barrel to $67.40 per barrel.

The cedi also depreciated from GHS10.90 to GHS10.98 to the US dollar reflecting a decline of about 0.77%.

At the pump, petrol is projected to sell at approximately GHS11.48 per litre, while diesel, expected to record the steepest adjustment, could rise to around GHS12.77 per litre. LPG is also forecast to increase to about GHS13.50 per kilogram.

However, COMAC notes that intense competition among oil marketing companies and prevailing market dynamics could see some marketers absorb part of the increases and maintain current pump prices.

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