The Chamber of Petroleum Consumers (COPEC), has predicted an increment in the prices of petrol and diesel by 3.7% and 2.5% respectively between January 1 and 16th, the first pricing window of the year.
Head of Research at COPEC, Benjamin Nsiah, attributed the anticipated fuel increment to two core factors, which included the currency depreciation and the price increment of fuel on the international market.
“Fuel prices are expected to increase in the first pricing window, from the 1st of January to the 16th mainly because of significant factors. Firstly, fuel prices have been increased on the international market and then because our cedi has depreciated against the dollar by 0.5%. Reviewing these conditions into our formula for calculating new prices, it indicates that diesel prices would go up by 17pesewas or in percentage terms 2.5%, while Petrol increases by 24pesewas or percentage terms 3.7%. When you observe our market very well, you would realize most Oil Market Companies do sell both diesel and petrol at same prices. If petrol is sold at 6.2 per litre, then diesel would sell at same price. Both selling at 6.2 per litre upon our observation, then averagely these products would go up by 3.1% on the market, that is 20 pesewas per litre,” he told Sefah-Danquah in an interview on Happy98.9 FM’s Epa Hoa Daben show.
However, Mr. Nsiah believes, due to competition on the oil market, it is most likely some companies would not increase their prices in other to gain competitive advantage. “Because of other factors like competition, some companies may not increase prices on the fuel products in the market. Some may also increase prices but not to the maximum adjustment upwards of 20pesewas increment in this market pricing window,” he added.
He further opined that; the Covid-19 pandemic could have varied influences on the prices of the fuel prices. That is, should the new omicron variant keep spreading, the demand for the fuel could reduce due to limited mobility and productivity.
By: Jude Tackie
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