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Fuel prices up 12% in 5 months

May 13, 2016, 9:58 a.m.

PRICES of petrol, diesel and Liquefied Petroleum Gas (LPG) have gone up by about 12.41 per cent,12.31 per cent and 16.6 percent

respectively since January 2016, Business Finder’s checks indicate.

Despite the relative stability in the price of crude oil since the beginning of this year,consumers have experienced price increaseswhich have been attributed to inflation and exchange rate fluctuation. 

Presently, crude oil is hovering around US$ 45 per barrel though it traded less than US$40 during the first quarter of this year.

This paper’s information indicates that a gallon of petrol which was selling at about GH¢14.10 per gallon in January 2016 is now going for about GH¢15.85 while diesel which used to sell at about GH¢13.80 per gallon is now going for GH¢15.50. LPG is however selling at GH¢49 now compared with GH¢42 per kilogramme.

Checks done by this paper revealed that some OMCs have for this month alone increased the prices of petroleum products sold at the pumps by about 4 percent.

The increment is part of the partial deregulation of the downstream petroleum sector which requires a fortnight review of petroleum prices.

Per the increment, petrol went up by 12 pesewas per litre while diesel increased by 10 pesewas per litre.

The Oil Marketing Companies (OMCs) began quoting their own prices late last year when the partial deregulation of the petroleum sector began. 

While some OMCs such as Total and Union Oil maintained their prices, others adjusted their prices upwards.

According to experts on energy, Ghana is among the countries in the world with very expensive petroleum products.

In December 2015, Parliament passed an Energy Sector Levy Bill (2015) that imposed more taxes including 17.5 percent Value Added Tax on petroleum products. 

The Road Fund component of the price build-up was GH¢0.40 per litre from the previous GH¢0.07 per litre.

The Africa Center for Energy Policy which accused government of burdening Ghanaians with too much petroleum levies said the levy imposed on petrol was GH¢0.12 per litre, diesel was GH¢0.10 per litre and LPG GH¢10 per kilogramme. 

These levies it stated translated into an increase in ex-pump price by 5 percent for petrol, 4 percent for diesel and 4 percent for LPG. 

Some airlines also decided to reduce their flights because of the cost ofo aviation fuelwhile potential ones adopted a wait and see attitude before commencing operations in Ghana.


Disclaimer: The views expressed in this news report do not necessarily reflect the position of the National Development Planning Commission (NDPC)