The Chamber of Petroleum Consumers (COPEC) has announced that fuel prices in Ghana will increase further this week. This rise is a direct consequence of climbing international crude oil and refined petroleum product prices.
The Executive Director of COPEC, Duncan Amoah, stated that recent upward adjustments in local pump prices align with global market trends. He emphasized that current fuel prices are supported by international market data. Petroleum prices have risen across major trading markets, making cheaper fuel unavailable globally.
This situation fits into Ghana's broader economic narrative of vulnerability to external shocks, particularly in the energy sector. The country, a net importer of refined petroleum products, often sees domestic prices mirror international movements. This trend impacts inflation and the cost of living for many Ghanaians.
Mr. Amoah explained on Joy FM's Midday News on Monday, June 27, that the prices reflect global market realities. "What you're seeing here is a stark reflection of the kind of prices you are seeing globally," he said. He added that Platts prices, which govern global trading of petrol, diesel, and aviation turbine kerosene (ATK), have significantly increased.
The impending price hike has serious implications for Ghanaian households and businesses. Transport operators are already threatening a 30% fare increase if the government does not address the escalating fuel prices. Petrol is currently selling at GHS 14.5 per litre, with diesel nearing GHS 18.
Even with the Tema Oil Refinery (TOR) resuming crude oil refining, Ghana remains exposed to international price movements. Mr. Amoah clarified that TOR purchases crude on commercial terms, paying prevailing international market prices. This means the refinery does not benefit from any special pricing arrangements.
The crude supplied to TOR is also dollar-indexed, linking domestic fuel prices to global oil price fluctuations and exchange rates. Mr. Amoah urged the Ghana National Petroleum Corporation (GNPC) and the Ministry of Energy to review the current supply arrangement. He suggested exploring whether Ghana's locally produced crude could cushion consumers from persistent price increases.
This ongoing challenge highlights the need for strategic energy policies to mitigate the impact of global price volatility. Decision-makers will need to consider interventions to protect consumers and maintain economic stability. The market will closely watch for any government response to the transport operators' demands and the broader fuel price situation.