Petrol and diesel prices to increase again — COPEC predicts

According to COPEC, the prices of petrol and diesel are expected to go up by 3.7% and 2.5% respectively.

It said ex-pump prices of petrol and diesel are expected to increase by 24 pesewas and 17 pesewas respectively.

In a statement on Monday, January 3, 2022, COPEC said "The average surge for both products in nominal terms is 20 pesewas representing 3.1%. Some Oil Marketing Companies (OMCs) could increase their prices less than the 20 pesewas increase due to competition."

It added: "Brent crude plunged by 10.7% to $73.45/barrel on the 26th November 2021 and the OPEC Reference Basket (OPB) plunged by 6.9% to $76.09/barrel on the same date. The OPB further tumbled to $70.07/barrel on 2nd December 2021. The plummeting crude oil prices were due to the new Omicron Variant new COVID-19 Omicron (B.1.1.529) variant which restricted mobility in some countries, and the expectation of gradual increment of oil production by Organisation of Petroleum Exporting Countries (OPEC).

"However, Brent crude futures settled up $1.56, or 2.1%, at $76.85 a barrel, the highest close since Nov. 26, and a gain of 4.5% on the week as of 23rd December 2021. Additionally, the U.S. West Texas Intermediate (WTI) crude futures ended up $1.03, or 1.4%, at $73.79 a barrel, to rise 4.1% on the week as of 23rd December 2021. The surge in crude oil prices is due to Libyan supply disruptions cutting the supply of about 300,000 b/d and the lower anxiety towards the new Omicron variant because of the perception that the variant is containable than previously feared."

COPEC stated that in addition to international prices, the currency of Ghana has also seen depreciation in recent times to other major trading currencies.

"In Ghana, the National Petroleum Authority (NPA) indicated that the benchmark price for petrol/MT for setting the ex-pump price of petrol in the 1st Window of January 2022 is $707.95/MT.

"Again, the Benchmark price for diesel/MT for setting an ex-pump price in the same widow is $641.38/MT. The NPA set the Ghana Cedi at GH¢6.4040 against a dollar," COPEC added.