Fuel prices will skyrocket beginning Wednesday, March 16, with customers likely to spend ¢11 per liter.
The situation has been blamed on market instability as well as the increased cost of crude on the international market, according to Bulk Oil Distributors.
According to Senyo Hosi, the cedi, which is weakening along with other major trade currencies, is also a factor in the rise in commodity prices.
Because of Russia’s invasion of Ukraine, oil prices have risen to their highest level in more than a decade and are on the approach of setting a new high, with crude prices expected to climb as high as 185 dollars per barrel.
According to the Institute for Energy Security’s (IES) forecasts for the March 2022 Second Pricing Window, which will run from March 16, 2022, to March 31, 2022, the price of Liquefied Petroleum Gas (LPG) would rise by 3%, while petrol and diesel will rise by 5% and 9%, respectively.
If the IES’ estimates come true, petrol would cost an average of ¢8.60 per litre, while diesel will cost an average of ¢8.90 per litre by the end of the month.
Meanwhile, the National Petroleum Authority (NPA) reports that Oil Marketing Companies (OMCs) are not raising their pump prices over the indicated levels issued to the authority.
At the moment, petrol and diesel are retailing at an average price of ¢8.2 per liter at the pump.
Before March 1, 2022, the average price of petrol and diesel was ¢7.50 per liter, marking an 8.6 percent increase over the previous pricing window.
The IES discovered that the Cedi depreciated by 4.82 percent to close at GH7.17 to the Dollar in the March 2022 First Pricing Window, down from GH6.85 to $1 in the previous window.
Regarding the cost of fuel on the international market, the Institute discovered that the price of the international benchmark Brent Crude rose to 14-year highs during the assessment period, reaching an average of $112.87 per barrel, representing a 19.95% increase over the previous window’s average price of $94.10 per barrel.
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SOURCE: myjoyonline
