Fuel prices to go up by 4-7%

Consumers of fuel will be paying more on fuel beginning September 1, the Chamber of Petroleum Consumers Ghana (COPECGH) has predicted.

The hikes in the pricing, the chamber explained come as figures emanating from the various Bulk Distribution Companies point to an imminent upward adjustment in pump prices.

“Figures from the various Bulk Distribution Companies point to an imminent upward adjustment in pump by between 4-7% across most BDCs as some BDCs who were charging 1.48/litre before taxes have moved to 1.71/litre and likely to result in pump prices going up by same margins,” said a statement from COPECGH Wednesday.

The statement which was signed by Duncan Amoah, the chamber’s Executive Secretary added that “the downstream price deregulation programme continues to be closely monitored and looks likely to roll to the second phase which allows the various oil marketing companies to charge different prices at their various stations across the country though we understand the national petroleum is asking for it to be put on hold.”

The second phase when rolled out has the tendency to cause a lot of distress and confusion as it would now completely leave the consumer to pay whatever rates the various outlets across the regions decide to charge, it warned.

This, it argues, will most likely affect cost of living at same.

Below is COPECGH’s full unedited statement

CHAMBER OF PETROLEUM CONSUMERS GHANA 1ST PRICING WINDOW-SEPTEMBER 31ST AUGUST 2016

FUEL PRICES SET TO GO UP BY BETWEEN 4-7%

The 1st pricing window for the month of September 2016 is set to commence from the 1st of September and there are very strong indications consumers will be paying more for fuel in the coming window. Prices accross the various Oil Marketing Companies went down by between 2-4% during the current fuel pricing window and has over the past one month seen some ccumulative reductions of between 3-6% accross most service stations.

Radiance oil continues to dispense the lowest prices for Pms or petrol at 3.425/litre and also sell the cheapest diesel on the market at 3.360/litre. Current world market prices continue to hover around $47/barrel up from previous levels of around $42/barrel as at the beginning of the current pricing window.

The cedi has over the past two seeks also recorded some loses to close trading at 3.98/dollar from previous trading at the start of the current window at 3.89. Figures from the various Bulk Distribution Companies point to an imminent upward adjustment in pump by between 4-7% accross most BDCs as some BDCs who were charging 1.48/litre before taxes have moved to 1.71/litre and likely to result in pump prices going up by same margins.

The downstream price deregulation programme continues to be closely monitored and looks likely to roll to the second phase which allows the various oil marketing companies to charge different prices at their various stations accross the country though we understand the national petroleum is asking for it to be put on hold.

This second phase when rolled out has the tendency to cause a lot of distress and confusion as it will now completely leave the consumer to pay whatever rates the various outlets accross the regions decide to charge and must not be encouraged as cost of products in places where prices will be higher will most likely affect cost of living at same.

The current uniform pricing policy serves the interests of a unified state as Ghana and will be dangerous if tampered with. Transport operators have served notice it will lead to charging of different transport fares at different parts of the country depending on how cheap or expensive pump prices for those areas are and will eventually lead to not only confusion but arbitrariness and eventual fleecing. We by this notice calling for the shelling of any such moves as it will not only violate the laws of the land but also lead to complete arbitrariness in the system.

Signed

Duncan Amoah

Executive Secretary

Chamber Of Petroleum Consumers Ghana ( COPECGH )