New and higher prices of fuel products have started showing at the pumps.
Fuel prices have gone up as the second pricing window begins. Market analysts had predicted an increase of up to 4%, which could negatively impact the transportation of goods, especially farm produce, IEA Pushes for Presidential Debate Despite NDC's Resistance from the farm gate to market centers.
One of the leading oil marketing companies Shell, has released new prices with petrol selling higher at GH¢15.10 per litre, Diesel is going for GH¢15.25 per litre while V-Power is selling at GH¢15.94 per litre. Liquefied Petroleum Gas (LPG) could sell at GH¢16.205 per kilogram, with a 14.5 kg cylinder reaching GH¢234.97. Some companies, however, might maintain or increase by a lower margin to attract customers.
The Chamber of Petroleum Consumers (COPEC) had forecasted a 4% hike in petroleum product prices due to the further depreciation of the cedi against the dollar, from $1: GH¢15.2779 in the previous pricing window to $1: GH¢15.462. But some of the fuel stations have posted prices higher than the projected 4%.
This marks the second fuel price increase in July, which could lead to agitation among commercial transport operators for fare hikes. The last transport fare increase occurred in April, ranging between 15% and 20%, which significantly impacted transportation costs and resulted in the transport sector posting the highest month-on-month inflation rate of 10.6% in May, affecting the overall cost of goods and services.
Even without a general fare increase for commercial transport, haulage trucks transporting goods, particularly food items, are likely to charge higher prices. This could further elevate food prices, which are already experiencing high inflation rates. In June, locally produced items had higher inflation rates, with 18 of the top 20 items with the highest inflation rates being locally produced. Common vegetables like okro, pepper, tomatoes, onions, and cabbage recorded inflation rates exceeding 50%.
These significant price increases in food and other locally produced items could be exacerbated by another round of fuel price hikes, as predicted by COPEC and other market analysts.
