Oil Marketing Companies are likely to increase fuel products by up to 3 per cent from today
Oil Marketing Companies (OMCs), will likely increase the prices of fuel products by up to 3 per cent from today due to the cedi’s latest downward plunge.
In response to the National Petroleum Authority’s deregulation policy prices of petroleum products will see a review every fortnight. Hence any shift in market indicators like exchange rates and other factors like the international crude oil prices induces a resultant shift in prices of fuel.
According to the Africa Centre for Energy Policy, ACEP, most Oil marketing Companies will have to increase their prices according to the Automatic Adjustment formula, making a projection of GHC 3.53, starting from today.
This however, will not see all Oil marketing companies increasing their prices. According to Dr. Mohammed Amin Adam, Executive Director of ACEP, an OMC like Goil who were selling petrol at GHC 3.42 a liter as at Friday will have to increase their prices by 3 per cent if they want to reach the maximum price increase indicator of GHC 3.53 , while, a company like Pacific oil who were selling Petrol at GHC 3.48 per litter will have a slimmer margin of 1 per cent by which they can increase their price.
'Other OMCs will have to rather reduce their current prices if they are to meet the indicative price. ‘Oando Ghana was selling petrol at GHC 3.58 per liter. With the indicative price of GHC 3.53, the company will have to reduce their prices by 0.1 per cent. So companies that increased their prices marginally during last month’s review, will have a little room to increase their prices under the new review’ Dr. Amin Adam stressed.
The executive director of ACEP’s projections are based on the National Petroleum Authority’s price adjustment formula under the deregulation policy.
He said the current competitive pricing system will, in the long run, inure to the benefit of the customer. Dr. Amin Adam said this in an interview with the media, Monday.
The National Petroleum Authority on June 2, 2015 implemented the full deregulation policy in the downstream petroleum sector, which implied that the consumer will bear the full brunt of any increases in the components of the petroleum pricing regime.