- Ghana Fuel Prices Could Rise Again This Week as Global Costs Climb — COPEC
Fuel prices in Ghana could increase again this week as rising international crude oil and refined petroleum product prices continue to feed into domestic pump costs, according to the Chamber of Petroleum Consumers.
Duncan Amoah, Executive Director of COPEC, said the latest increases by oil marketing companies were consistent with movements on international petroleum markets and could be followed by further adjustments if global prices continued their upward trajectory.
Petrol is currently selling at about GH¢14.50 per litre at some pumps, while diesel is approaching GH¢18.00, adding to cost pressures facing households, transport operators and businesses.
“The prices are fair based on the numbers we have in-house,” Mr Amoah said in an interview with Joy FM. He argued that the increases reflected movements in Platts prices, the international benchmarks used for trading refined petroleum products including petrol, diesel and aviation turbine kerosene.
Mr Amoah said petroleum prices had risen across major markets, including the United States, where earlier declines had begun to reverse. Ghana’s pump prices were therefore reflecting wider global market conditions rather than arbitrary adjustments by domestic suppliers, he said.
COPEC’s warning comes as transport operators threaten to increase fares by 30.00% unless the government intervenes to reduce the impact of higher fuel costs.
A significant fare adjustment would extend the effects of the petroleum price increases beyond motorists, potentially raising commuting expenses and the cost of transporting food, manufactured goods and other products across the country.
Fuel is a major component of operating costs for public transport providers, logistics companies, manufacturers and businesses that rely on generators or extensive distribution networks. Persistent increases can therefore move quickly through the economy and place renewed pressure on consumer prices.
Ghana’s deregulated petroleum pricing system allows oil marketing companies to adjust pump prices in response to changes in international product prices, the cedi-dollar exchange rate, taxes, levies and other elements of the price build-up.
The warning also raises questions about whether the resumption of crude oil refining at the Tema Oil Refinery can meaningfully protect consumers from movements on the international market.
Mr Amoah said discussions with TOR indicated that the refinery was purchasing crude oil on commercial terms at prevailing global prices rather than receiving supplies under a preferential arrangement.
That means the refinery remains exposed to international crude prices even when fuel is processed domestically. The crude is also priced in dollars, leaving the final cost vulnerable to changes in both the oil market and the exchange rate.
Domestic refining can reduce some costs associated with importing finished petroleum products and improve supply security. But it does not automatically guarantee lower pump prices where the refinery must acquire crude at full international market value and bear commercial financing and processing costs.
Mr Amoah said COPEC had sought clarity on whether the government was supplying crude to TOR under a discounted formula linked to Brent or West Texas Intermediate benchmarks.
However, the available information suggested that the supply arrangement was strictly commercial, requiring TOR to pay the price agreed on the international market.
The consumer advocacy group urged the Ghana National Petroleum Corporation and the Ministry of Energy to review the arrangement and consider whether locally produced crude could be used more strategically to reduce Ghana’s exposure to repeated fuel price increases.
Such a policy would require the government to determine whether crude produced from Ghana’s offshore fields could be supplied to domestic refineries under terms that provide consumer relief without undermining petroleum revenue, contractual obligations or the commercial interests of upstream producers.
The debate reflects a longstanding policy challenge for Ghana. The country produces crude oil but continues to import substantial volumes of refined petroleum products because domestic refining capacity has historically been insufficient, unreliable or underutilised.
Even where domestic refining increases, the prices of both crude and finished products remain connected to global markets. Any attempt to offer discounted crude would effectively transfer part of the cost away from consumers and towards the state, the producer or another participant in the petroleum value chain.
The immediate concern is whether another pump price increase would intensify demands from transport operators for higher fares.
A 30.00% increase in transport charges could have broader inflationary consequences, particularly for workers who depend on commercial transport and traders who move food and other goods from production centres to urban markets.
Businesses may also face pressure to adjust prices where higher diesel and petrol costs raise production, distribution and logistics expenses.
The effect on inflation will depend on the size and duration of the fuel increases, the response of the cedi and whether transport fares and other administered prices are adjusted.
COPEC’s assessment suggests that the near-term outlook remains difficult. While domestic pricing can benefit when the cedi strengthens or international prices fall, the current combination of rising refined-product prices and commercially priced crude offers limited room for immediate reductions.
For consumers, the resumption of refining at TOR may improve energy security, but it will not by itself break the connection between Ghanaian pump prices and the international petroleum market.
Unless global prices retreat, the currency strengthens or the government changes the crude supply and tax arrangements, motorists and businesses could face another round of increases before the end of the week.
