The Chamber of Petroleum Consumers (COPEC) has predicted a further increase in fuel prices by Tuesday, November 1, 2022.
COPEC says Liquefied Petroleum Gas (LPG) is likely to see a 10 per cent increase, with petrol and diesel likely to increase between GH₵ 3 and GH₵ 8, respectively.
This has been necessitated by the international price movements of petroleum products.
Some oil marketing companies are currently selling petrol at GH₵ 17 while diesel sells at GH₵ 19 per litre at the pumps.
“We are certain that one of the key things confronting the generality of Ghanaians currently has to do with fuel prices that keep increasing week in, week out. As of October 28, we were doing an average GH₵ 14 for petrol while diesel was averaging between GH₵ 17 to GH₵ 19 a litre,” said Executive Director of COPEC, Duncan Amoah.
Mr Amoah added that the future still looks gloomy for the country in terms of fuel prices.
“Most of us expected that the presidential address would attempt some urgent solutions to the situation we find ourselves in with respect to forex and ways to bring down prices. Unfortunately, the only bit we heard was that we are going to explore fuel from cheaper places; we do not have the details.
“To say that we are not probably out of the woods yet as far as fuel price increases will be an understatement. On Tuesday, expectations within the downstream market could go up again,” he stated.
Meanwhile, the president has assured Ghanaians that the government is taking steps to secure affordable fuel to address the galloping fuel prices.
While addressing the country’s economic hardships on Sunday, he said, “government is working to secure reliable and regular sources of affordable petroleum products for the Ghanaian market. It is expected that this arrangement, when successful, coupled with a stable currency, will halt the escalation of fuel prices and bring relief to us all”.
What can be done to address the situation?
The COPEC-Ghana Executive Secretary told The Ghana Report, “We have a local refinery that we could have leveraged to get some fuel security at lower prices, but unfortunately, we don’t think there is a political will to refurbish the Tema Oil Refinery”.
Mr Amoah observed a fully functional refinery would cut the logistical cost, which adds to the price build-up by exporting crude to Europe to be refined before importing back to Ghana.
“The need to get TOR back on stream and the need for political interference to be stopped holds the key for all for us,” he underscored.
Additionally, he cited the Bulk Oil Storage and Transportation Company Limited’s (BOST) failure in executing its mandate.
Mr Amoah explained that BOST is supposed to store huge volumes of fuel and release to the market to level prices and to check shortages “without overstretching the already burdened Ghanaian taxpayer”.
However, “we do not see that function of BOST, and they are now focusing on trading…which was not the purpose of the BOST Act but to hold strategic stock”.