The Chamber of Petroleum Consumers (COPEC) has forecasted that Ghana could face considerably higher fuel prices by the end of 2024 if escalating tensions in the Middle East persist and the depreciation of the cedi continues.
This caution follows the recent decision by several Oil Marketing Companies (OMCs) to raise fuel prices during the first pricing window of October, reversing the sustained price drops seen over the previous four pricing windows.
Shell, for example, increased the price of petrol (FuelSave Super) from GH¢13.49 per litre in the second pricing window of September to GH¢13.79. Diesel (FuelSave Diesel) saw a similar jump, from GH¢13.99 to GH¢14.35 per litre. The latest price hikes have sparked anxiety among consumers who are already struggling with the rising cost of living.
Duncan Amoah, Executive Secretary of COPEC, during an interview with Citi Business News on Wednesday, October 2, highlighted that the ongoing geopolitical conflicts involving Israel, Hamas, and Hezbollah could significantly impact Ghana, with consumers likely to face even higher fuel costs.
He added that Ghana’s “gold for oil” policy is unlikely to protect the country from the anticipated price increases.
“You could end up paying more than you currently are paying because the cedi is still depreciating. Israel, Hezbollah, Hamas—the triangle—whatever tensions if they escalate will simply mean the supply side will be hampered, and demand at this time of the year is likely to surge.
“So if demand should go up due to manufacturing and aviation systems connecting, then the expectation will be that global or international market prices will increase.
“Unfortunately for us in Ghana, we don’t have any safety nets to cushion us if they do. From where we sit, there is the possibility that Ghanaians may end the year paying a little more for fuel,” Amoah explained.
