Fuel prices projected to increase on Jan. 17 due to cedi depreciation, rising global crude prices
“Ideally, things were going well, as we all know, but plant prices are rising. Within just 24 hours, we’ve observed a 0.33% increase in global Free-On-Board plant prices. The exchange rate remains unstable”, he said.
Petroleum product prices are expected to increase marginally at the pumps from Friday, January 17, 2025.
This has been influenced by rising prices of crude oil on the international market and recent pressures on the cedi. The Cedi started 2025 on a losing streak, depreciating marginally by 0.38% to the US dollar in the retail market.
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Speaking to Joy Business, the Chief Executive of the Chamber of Oil Marketing Companies, Dr. Riverson Oppong explained that global crude prices and recent cedi depreciation are the main drivers for the projected price increase.
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According to him, the drivers were stable until some changes were noticed in the global price of crude and the strength of the local currency.
“Ideally, things were going well, as we all know, but plant prices are rising. Within just 24 hours, we’ve observed a 0.33% increase in global Free-On-Board plant prices. The exchange rate remains unstable”, he said.
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“We’ve seen some hikes, ups and downs. Petroleum prices are also increasing, driven by the rise in plant prices and forex rate volatility”, he added.
Dr Oppong stressed that oil marketing companies are obliged to adjust prices to conform to the directives of the regulator.
“Whether my members will adjust, we are required to adhere to the regulatory framework concerning the floor price. We are not permitted to sell below the floor price set by the National Petroleum Authority. Therefore, the floor price for this current window will differ from the upcoming window, mandating that we increase our prices accordingly”, he said.
Source: myjoyonline.com
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