Ghana Petrol Prices Set to Rise Up to 4.8% From Sept 1

Petrol prices at Ghanaian pumps are expected to rise by between 3.60% and 4.80% from Tuesday, September 1, while diesel prices increase by up to 2.10%, the Chamber of Oil Marketing Companies (COMAC) has said, citing higher global crude and refined product prices.

According to COMAC, the projected increases come despite a recent appreciation of the Ghanaian cedi, which would normally ease pressure on pump prices. Liquefied petroleum gas (LPG) prices are moving in the opposite direction, expected to fall by between 0.90% and 1.50%.

The government's decision to extend a 2 Ghanaian cedi per litre reduction in the regulatory margin on diesel, one of the components built into the pump price alongside taxes and distribution costs, is expected to soften the size of the diesel increase and cushion consumers, COMAC said.

Iran sanctions keep global prices elevated

Average crude oil prices rose 1.75% to $92.11 a barrel from $90.53 during the pricing period, even after the United States announced what COMAC described as its toughest sanctions yet against Iran. The sanctions had limited immediate effect on prices, but mediation efforts by Qatar and Pakistan failed to ease tensions, and continued uncertainty over shipping through the Strait of Hormuz, a critical route for global oil shipments, kept prices elevated, according to COMAC.

COMAC explained that oil prices are likely to remain high and volatile, with intermittent disruptions to transit through the Strait of Hormuz continuing to weigh on the market. Iran and Oman are negotiating a temporary shipping corridor, but Iran has said normal passage will not resume until U.S. sanctions and the blockade are lifted, COMAC said.

International prices for refined petroleum products rose across the board during the period, with petrol recording the largest increase at 8.86%, followed by diesel at 5.51% and LPG at 3.31%.

Regulator raises minimum retail floors

Separately, Ghana's National Petroleum Authority (NPA) has raised the price floors for petrol and diesel for the first pricing window of September compared with the second window of August. The petrol floor rose to 14.53 Ghana cedis per litre from 13.92 cedis, while the diesel floor increased to 15.60 cedis per litre from 15.19 cedis. LPG was the only major product to see its floor fall, dropping to 10.85 cedis per kilogram from 10.98 cedis.

Ghana reviews petroleum product prices every two weeks, with adjustments generally tracking movements in international oil prices, the cedi's exchange rate and other components of the pricing formula. The next review is expected to reflect how the Strait of Hormuz situation and Iran sanctions develop over the coming fortnight.