The Chamber of Petroleum Consumers (COPEC) is projecting marginal increases in petroleum prices at the pumps when the second pricing window takes effect on July 16.
The projected hike is driven by higher international refined petroleum product prices and a slight depreciation of the cedi against the US dollar.
According to the Chamber, the projected adjustments come despite global crude oil prices easing from $78 per barrel to $71.9 per barrel during the pricing window.
However, gains in international prices for refined petroleum products offset the decline in crude oil prices, while the cedi weakened marginally by 0.56% against the US dollar over the period.
For petrol, the Free-on-Board (FOB) price increased by 5.4%, rising from $920.34 per metric tonne to $970.63 per metric tonne.
COPEC expects petrol to retail between GH¢13.15 and GH¢14.53 per litre, depending on pricing decisions by individual Oil Marketing Companies (OMCs).
Diesel is also expected to record an upward adjustment after its international FOB price climbed 8.75%, from $896.02 per metric tonne to $974.40 per metric tonne.
COPEC expects retail prices of diesel to range between GH¢14.16 and GH¢15.65 per litre across the market.
Meanwhile, LPG prices are expected to edge lower after international FOB prices declined marginally by 0.52%, from $548.50 per metric tonne to $545.65 per metric tonne. COPEC projects LPG to retail between GH¢9.47 and GH¢10.46 per kilogram.
Despite projecting higher prices for petrol and diesel, COPEC has urged Oil Marketing Companies to exercise restraint in their pricing decisions and maintain pump prices where possible.
Meanwhile, price floors for petrol, diesel and liquefied petroleum gas (LPG) have increased for the second pricing window of July compared with the benchmarks set for the first pricing window of the month.
Fresh figures from the National Petroleum Authority (NPA) sighted by Citi Business News show that the price floor for petrol has been adjusted to GH¢13.28 per litre for the second pricing window of July, up from GH¢12.79 per litre in the first window.
This represents an increase of GH¢0.49 per litre, equivalent to a 3.8% rise.
For diesel, the price floor has been increased to GH¢14.35 per litre from GH¢13.54 per litre, reflecting an upward adjustment of GH¢0.81 per litre, representing a 6.0% increase.
The LPG price floor has also inched up to GH¢10.19 per kilogram from GH¢10.11 per kilogram in the first pricing window, a difference of GH¢0.08 per kilogram, equivalent to a 0.8% increase.
The latest figures mark a reversal from the recent declines recorded in petroleum product price floors, as the NPA adjusts the benchmarks in line with prevailing market conditions.
The upward adjustment in the price floors comes amid renewed tensions in the Middle East involving the United States and Iran, which have pushed international crude oil prices higher, with Brent crude prices crossing above US$80 per barrel.
There are concerns that a sustained increase in global crude prices could translate into renewed pressure on ex-pump fuel prices in Ghana, depending on developments in the international market and movements in the local currency.
Credit: Citi Newsroom