The Chamber of Petroleum Consumers (COPEC) has warned that fuel prices could rise from the second pricing window of September as a surge in global crude oil prices puts fresh pressure on the domestic petroleum market.
COPEC Executive Secretary, Duncan Amoah, said the recent increase in Brent crude oil prices, which has crossed the $100 per barrel mark, could translate into higher pump prices from September 16.
According to him, the impact of rising crude oil prices is not usually immediate because changes in international crude prices take some time to pass through the refining, importation and distribution chain.
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However, he cautioned that the latest development, coupled with already elevated market and importation premiums, could trigger an upward adjustment in the prices of petroleum products in Ghana.
“It’s one of the indicators that likely prices for the next window will be a little up or higher for the Ghanaian market,” Duncan Amoah said in an interview with Citi Business News.
He explained that petroleum consumers may begin to feel the effect during the second pricing window of September, which starts on September 16.
“On this occasion, what is likely going to happen is that it will not take effect now, but most likely you could have some adjustment in prices by the 16th, which is the second window in September,” he said.
Mr Amoah further warned that any increase in fuel prices could add to the financial burden on motorists and households, particularly because petroleum marketers are already dealing with high market and importation premiums.
“What this means is that you are probably most likely going to pay a little more for petrol in Ghana, not forgetting the fact that market premiums and then, of course, importation premiums are high,” he added.
His comments come amid growing concerns over the impact of developments in the international oil market on domestic fuel prices.
Fuel prices in Ghana are reviewed periodically, with changes influenced by international crude oil prices, the exchange rate, taxes and levies, and other components of the petroleum pricing structure.
Meanwhile, COPEC has welcomed the decision by transport operators to maintain existing fares despite pressures within the petroleum market.
He said the decision would provide some relief to commuters in the short term, particularly at a time when consumers are already dealing with rising costs.
However, he questioned how long transport operators would be able to maintain current fares if petroleum prices increase significantly in the coming weeks.
“Clearly for me, that is good that they are deciding not to increase first. Except that the question will be how long can they sustain their operations if prices of petroleum products were to go up again,” he remarked.
The potential increase in fuel prices could therefore put transport operators in a difficult position, as higher fuel costs could raise their operating expenses while maintaining existing fares could squeeze their margins.