Fuel Prices Set to Jump as Global Oil Costs Rally, COPEC Warns.

ACCRA — Consumers in Ghana face higher energy bills at the pumps starting Wednesday, September 16, as retail prices for petrol, diesel, and Liquefied Petroleum Gas (LPG) are projected to rise significantly following a sharp increase in global crude and refined petroleum costs.

Data released by the Chamber of Petroleum Consumers (COPEC) projects that petrol will average GH¢16.26 per litre, up 4.24 percent from the current average of GH¢15.60 per litre during the second pricing window of September. Diesel is set for a steeper jump of 10.23 percent, rising from GH¢17.30 to an average of GH¢19.07 per litre. Depending on individual Oil Marketing Companies (OMCs), retail prices are expected to range between GH¢15.44 and GH¢17.08 for petrol, and GH¢18.12 to GH¢20.02 for diesel. LPG is also forecasted to sell at GH¢15.32 per kilogramme.

Global Market Pressure Outweighs Local Currency Gains COPEC attributed the upcoming retail price hikes to severe external pressure in international markets, where global crude oil jumped from $89.30 to $103.07 per barrel over the pricing window.

The surge extended across international Free-On-Board (FOB) benchmark prices for finished products. Petrol FOB prices rose 10.08 percent from $1,136.50 to $1,251.07 per metric tonne, while diesel spiked 12.33 percent from $1,250.50 to $1,404.73 per metric tonne. International LPG prices recorded the highest climb, surging 16.45 percent to $712.43 per metric tonne.

These international cost pressures overshadowed positive movements on the foreign exchange front, where the Ghanaian cedi recorded a slight 0.29 percent gain against the US dollar, moving from GH¢11.5166 to GH¢11.4830 per dollar on the interbank market.

Calls for Government Relief and Domestic Refining Expansion To mitigate the economic impact on households and businesses, COPEC appealed to the government to extend and enhance its fuel intervention measures beyond the first pricing window of September. The Chamber proposed maintaining a GH¢2 per litre subsidy on diesel while introducing a GH¢1 per litre relief for petrol until global prices settle. COPEC also urged OMCs to sacrifice a portion of their profit margins to cushion retail buyers.

Looking toward long-term structural solutions, the consumer group advocated for accelerated expansion of the state-owned Tema Oil Refinery (TOR) to boost domestic processing capacity.

"Expanding TOR's processing capacity from its present 45,000 barrels per day to 100,000 barrels per day is critical to reducing Ghana's heavy dependence on imported refined petroleum products and safeguarding consumers from international price volatility," the Chamber stated.