NPA increases petroleum prices by 20 per cent
The National Petroleum Authority (NPA), effective today, December 29, 2011, has increased petroleum prices by 20 per cent.
The increases according to the NPA are influenced by the government’s decision to withdraw subsidies on the products from next year.
Fuel prices at the pumps are based on an initial world market price of $92 per barrel. The increase is therefore expected to reflect the current world price of about $107 dollars.
Below is the full statement from the authority:
In January 2011, the NPA announced Petroleum Products Pump Prices based on prevailing International Crude Oil and Petroleum prices at the time - Crude Oil price (Brent Crude) was at USD92/barrel, and the Exchange Rate was at GHS1. 4629 per USD1. 00.
The average per barrel price of Crude oil for 2011 is USD111 with Current Prices at USD110, which is approximately a 20% increase since the last Petroleum Products Pump Price review when Crude Oil Prices were at USD92/barrel.
Also, the current exchange rate is at GHS1. 5464/USD which implies the Cedi has depreciated by about 5. 7% since Jan 4th, 2011.
The Culminating effect of
a) International Crude price movement and b) depreciation of the Cedi implies an over 25% increase (in Ghana Cedi terms) in the cost of procuring crude oil and petroleum products since Jan 4th, 2011.
By the end of 2011, Govt of Ghana would spend over GHS450 million in subsidies for the 2011 year.
The current situation is as follows:
Crude Oil Prices are currently at USD110/barrel and the Exchange rate is GHS 1. 5464/USD
Based on the above information, the NPA wishes to announce, effective Thursday 29th December, 2011, the Maximum Petroleum Products Pump Prices as follows:
Petrol GHp 175. 48 per litre
Diesel GHp 177. 09 per litre
Kerosene GHp 91. 00 per litre
LPG GHp 136. 19 per kg
(A 12. 5kg Cylinder will now sell at GHS17. 02, and a 14. 5kg cylinder will sell at GHS19. 75)
Premix GHp 54. 27 per litre
RFO GHp 83. 93 per litre
The price change, effective tomorrow, 29th December, 2011 as a percent of the current Maximum Petroleum Products Pump Prices, is as follows:
Petrol - 15%
Diesel - 15%
Kerosene - 0%
LPG - 30%
Premix - 0%
RFO - 0%
The NPA will be monitoring the International Prices and intends not to decrease or increase Petroleum Products Pump Prices if the average prices of Crude Oil consistently remains within the USD107/bbl to USD111/bbl range.
The NPA will continue with its bi-weekly review of the International Prices to ensure that the Suppliers of Petroleum Products are paid the full cost recovery price using Import Parity.
By: e.tv Ghana
Accra, May 17, 2012
Government’s management of revenue generated from the country’s oil and gas resources will today come under intense scrutiny ... 