Fuel Prices May Rise in Next Pricing Window – Analyst Warns
By: Solomon Nartey Tetteh
Financial Analyst, John Kyei, has indicated that fuel prices in Ghana may remain relatively stable in the current pricing window but could see a significant increase in the next window due to rising global crude oil prices.
Speaking on the Business Breakfast on Zed 101.9FM, Mr. Kyei explained that Ghana operates a bi-weekly fuel pricing system known as the pricing window, which influences how quickly changes in global oil prices affect pump prices.
According to him, the current supply of petroleum products in the country was procured earlier at relatively lower prices by Bulk Distribution Companies (BDCs) and Oil Marketing Companies (OMCs). Because the importation and distribution process typically takes about two weeks, the fuel currently being sold at pumps reflects transactions completed during the previous pricing window.
“What it means is that the current supply that we are getting has already been purchased by the BDCs and the OMCs at the lower price during the previous window. So we are not likely to see any significant increase in fuel prices for this window,” he said.
However, Mr. Kyei cautioned that the situation could change in the next pricing window as BDCs begin to procure new stock at higher international prices.
He explained that refined product prices have already begun rising, noting that petrol was previously sold by BDCs to OMCs at about GH¢6.5 per litre, while diesel sold for around GH¢7.5 per litre before taxes and other levies were added.
“When you add the taxes and other margins, that is why pump prices were hovering around GH¢10 to GH¢12 per litre,” he said.
Mr. Kyei warned that the sharp increase in global crude oil prices could push fuel costs higher if the trend persists. He noted that crude oil prices had risen from about USD 71 per barrel to nearly USD 110 per barrel, representing a significant increase.
According to him, such a rise in crude oil prices directly affects the cost of refined petroleum products, which could ultimately translate into higher pump prices for consumers in the coming pricing window.
