Ghana’s motorists warned to brace themselves for fuel prices spike up beginning June

The IES made the revelation in a press statement for the first pricing window for June.

According to the statement, the increment in the price of fuel is occasioned by the 1.09 percent rise in average Brent crude price, as well as a corresponding 4.38 percent and 0.46 percent increase in prices of Gasoline and Gasoil on the international market respectively.

The increase can also be attributed to the constant performance of the cedi against the U.S dollar.

Research Analyst of the Institute, Mikdad Mohammed who explained the released further in an interview, indicated that the increase that may occur will be beyond the government’s control, unlike the previous increment that saw the government’s intervention.

He noted that “The stable fuel price Ghanaians experienced at the pump is not only attributable to the stability of the local Cedi against the Dollar but also because the National Petroleum Authority fully forfeited the Price Stabilization and Recovery Levy (PRSL) mechanism in the Petroleum Price Build-Up (PBU) to further cushion the market,” adding that, “The National Petroleum Authority (NPA) by eliminating the twelve pesewas in petrol and the ten pesewas in diesel pricing stabilization mechanism influenced the stability."

He then added that "But for this window even what we are seeing on the international market and how the cedi has depreciated against the dollar, we anticipate the fuel prices to go up”.

Benab Oil, Pacific Oil, Frimps Oil, Compass Oil and Goodness Oil are noted to sell the least-priced fuel (GH¢5 per litre) while Shell, GOIL and Total sell the highest-priced fuel (GH¢5.25 per litre) relative to other Oil Marketing Companies (OMCs).