- COPEC predicts higher fuel prices.
- Fuel prices already rising.
- Gold for oil policy ineffective.
- Economic implications significant.
The Chamber of Petroleum Consumers (COPEC) has issued a warning that Ghana may face significantly higher fuel prices by the end of 2024. This prediction is based on the escalating tensions in the Middle East and the continued depreciation of the cedi.
According to COPEC, the ongoing conflicts between Israel, Hamas, and Hezbollah in Lebanon could disrupt global supply chains, leading to increased demand and subsequently higher prices.
The latest warning comes after some Oil Marketing Companies (OMCs) adjusted fuel prices upward in the first pricing window of October. This increase follows four consecutive pricing windows of declines.
For instance, Shell’s FuelSave Super petrol now sells at GHS 13.79 per liter, up from GHS 13.49, while FuelSave Diesel now costs GHS 14.35 per liter, previously GHS 13.99.
The price adjustments have sparked concern among consumers already struggling with the high cost of living. Many Ghanaians are worried about the potential impact on their daily lives.
COPEC’s Executive Secretary, Duncan Amoah, explained that the gold for oil policy cannot mitigate the expected price hikes. He cited the continued depreciation of the cedi against the US dollar as a contributing factor.
Amoah noted that Ghana’s lack of safety nets to cushion consumers from price shocks exacerbates the situation. The country’s reliance on imported fuel makes it vulnerable to global market fluctuations.
The International Energy Agency (IEA) projects global crude oil production to outstrip demand between now and 2030. However, this may not translate to lower prices for Ghanaian consumers due to local factors.
Ghana’s economy is heavily reliant on fuel, and potential price hikes have significant implications for industries such as transportation, manufacturing, and agriculture.
As tensions in the Middle East continue to escalate, Ghanaians may face even higher fuel prices, exacerbating the already high cost of living. Consumers are advised to prepare for possible price increases and explore alternative energy sources.
