The Chamber of Oil Marketing Companies (COMAC) has projected significant increases in ex-pump prices of petroleum products during the second pricing window of March.
According to COMAC’s latest pricing outlook, petrol, diesel, and liquefied petroleum gas (LPG) prices are expected to rise by 16.93%, 17.21%, and 11.26% respectively.
Global crude oil surge drives increases
The projected hikes are largely attributed to a sharp rise in international crude oil prices amid escalating geopolitical tensions in the Middle East and disruptions along the critical oil shipping corridor, the Strait of Hormuz.
Oil prices climbed significantly in mid-March, rising from $71.41 per barrel to $86.55 per barrel during a volatile trading period. Market analysts note that heightened rhetoric among global leaders over the ongoing conflict involving Iran has outweighed the impact of an emergency crude oil reserve release by the International Energy Agency (IEA).
International product prices also spike
Prices of refined petroleum products on the international market have also recorded substantial increases. Diesel registered the highest jump at 43.94%, followed by LPG at 23.96% and petrol at 19.41%, reflecting tightening supply conditions and increased demand pressures globally.
Cedi records marginal appreciation
Despite the rising global commodity prices, the Ghana cedi recorded a slight appreciation against major trading currencies during the period under review.
For the March 16 pricing window, the cedi strengthened from GHS 11.049 to GHS 10.913 per US dollar, representing a 1.25% gain. According to research by Databank Group, the rise in commodity prices has boosted foreign exchange inflows and improved liquidity within the domestic market.
However, analysts say the marginal appreciation of the local currency is unlikely to offset the sharp increases in international petroleum prices, leaving consumers to face higher fuel costs at the pumps in the coming pricing window.
Source: energycrossroad.com
