Fuel prices expected to increase from July 16

Motorists should expect higher fuel prices from Thursday, July 16, as oil marketing companies prepare to increase pump prices.

According to the Chamber of Oil Marketing Companies (COMAC), petrol, diesel and liquefied petroleum gas (LPG) are all expected to record price increases during the second pricing window of July.

Petrol prices are projected to rise by between 3.79% and 5.31%, with a litre expected to sell for about GH¢14.52.

Diesel is expected to increase by about 7 pesewas per litre to around GH¢16.00, while LPG prices are projected to rise by between 1.10% and 1.30% per kilogram.

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COMAC attributed the expected increases to renewed geopolitical tensions, which have pushed up international crude oil and refined petroleum product prices, as well as a slight depreciation of the Ghana cedi.

The cedi weakened by 0.55% during the pricing period, with the exchange rate moving from GH¢11.4333 to GH¢11.4970 per US dollar.

The Chamber said Brent crude prices rebounded above US$84 per barrel after reports of renewed tensions involving Iran and concerns over shipping through the Strait of Hormuz.

Meanwhile, the National Petroleum Authority (NPA) has raised its price floors for the second pricing window of July.

The petrol price floor has increased from GH¢12.79 to GH¢13.28 per litre, while the diesel price floor has risen from GH¢13.54 to GH¢14.35 per litre. The LPG price floor has also been adjusted upward by 0.79%.

The revised NPA price floors reinforce expectations of higher fuel prices across the country from July 16.