Some OMCs increase fuel prices at pumps

Some Oil Marketing Companies increase fuel prices at pumps with Total Ghana taking the lead and selling a litre of diesel and petrol at GH¢6.90 respectively.

The upward adjustment is a result of rising crude oil prices on the international market.

The price of crude oil is presently going for about $82 on the world market.

It could have even been higher than the 1.47 percent increment if the Price Stabilisation and Recovery Levy (PSRL) had not been suspended on fuel prices for the next two months. This has resulted in a litre of diesel and petrol going down by 14 pesewas and 16 pesewas per litre respectively.

However, some OMCs, largely the smaller ones have also cut their prices slightly.

But the increment by Total and a few others is contrary to the assertion by the Chief Executive of the Association of Oil Marketing Companies (AOMCs), Kwaku Agyemang-Duah.

Mr. Agyemang-Duah had told Joy Business that the implementation of the PSRL would trigger a slight reduction in fuel prices in the current price window.

We have been instructed or directed by the NPA to remove the stabilisation levy, from November 1 so it will dampen (fuel prices) a bit. It will be a bit lower than the previous window. By Monday, there will be a reduction…some reduction because of the dampening effect of the stabilisation”.

“Even though the crude oil price is going up, there will be a relative reduction. There is a dampening effect on fuel which will let us feel a little bit of relief. Basically, petrol, diesel, and LPG (Liquefied Petroleum Gas) prices will go down,” he stated.

But the Chief Executive of the Chamber of Petroleum Consumers, Duncan Amoah, disagreed, saying, the top OMCs – Total, Shell and GOIL were rather going to adjust fuel prices upward.

“What is more likely to happen this month and the days beyond is rather stability or rather an increase and not a reduction…that I can confirm. It is unlikely they (OMCs) will be able to go down,” he said.

“A lot of the Bulk Oil Distribution Companies you speak to currently will indicate an upward adjustment of more than 20 pesewas. So the source you get the product from, if the importer is actually paying an increment and we are talking of a reduction of 20 pesewas, mind you some OMCs have already given out the 16 pesewas in anticipation of Parliament passing the removal of the PSRL,” he said.

Meanwhile, this latest increase in fuel prices could push the unionised transport operators to kick start the process of increasing fares.