Oil Marketing Companies (OMCs) have started increasing the prices of fuel at the pumps from today, April 4, 2024.
Some OMCs are selling a litre of petrol at GH¢13.57, diesel at GH¢14.05 per litre, and LPG at GH¢14.34 per kilogram, up from the previous GH¢13.41, GH¢13.91, and GH¢14.20, respectively.
This follows the National Petroleum Authority (NPA) reversal of the suspension of the Price Stabilization and Recovery Levy on the price build-up of petroleum products.
This was captured in a letter dated April 3, 2024, to the various players in the oil marketing and distribution industry.
The NPA, in the letter, directed all the OMCs and the other players that from April 4, they should now apply 16 pesewas per litre of Petrol, 14 pesewas per litre of Diesel and 14 Pesewas on every Kg per Liquefied Petroleum Gas (LPG).
It is unclear what influenced the NPA to revise the suspension of the Price Stabilization and Recovery Levy.
Hitherto the suspension, there were earlier projections of prices remaining unchanged for the first pricing window of April.
The Chamber of Petroleum Consumers (COPEC) predicted fuel prices at various outlets nationwide to remain stable.
According to COPEC, the projected price for a litre of petrol was priced at GH¢13.41, barring any significant changes in global petroleum prices, with diesel expected to be sold at GH¢13.91 per litre and LPG at GH¢14.20 per kilogram.
However, COPEC anticipated a potential rise in petrol prices in the second pricing window, while diesel and LPG prices are likely to remain unchanged.
COPEC had previously warned that unless measures are taken to stabilize the cedi against the dollar, fuel prices will continue to rise in the coming weeks.
The Chamber attributed the recent slight increases in fuel prices to the depreciation of the local currency and predicted that fuel prices could see another hike at gas stations by the end of the week.
Background
The National Petroleum Authority announced, in a letter dated March 28, 2024, the suspension of the Price Stabilization and Recovery Levy (PSRL) on price build-up on petroleum products.
This froze the implementation of the levy charged on every litre of petroleum products and Kilogram of LPG from Monday, April 1 to June 30 2024.
According to the National Petroleum Authority, this was based on a directive from the Finance Ministry working with the Energy Ministry.
About Price Stabilization and Recovery Levy
The Energy Sector Levies Act 2015 (Act 899) allows the National Petroleum Authority to stabilise petroleum product prices for consumers over a certain period.
It currently charges 16 pesewas per litre for petrol, fourteen pesewas per litre (GHp14/Lt) for diesel and 14 pesewas per kilogram (GHp14/Kg) for LPG.