Home / Business / Petroleum prices projected to increase by 14%

Petroleum prices projected to increase by 14%

The energy sector is likely to witness its first major shock in decades with prices of petroleum products projected to increase by 14 percent before the end of this week, Obuouba Business has gathered.

Sources say the geometric increase has been necessitated by the continuous hike in crude oil prices on the international market due to the current tropical storms in the United States oil-rich state, Texas.

Known for its pine forest and oil reserves in the southern US, Texas has been buffeted by Hurricane Harvey which has affected its key cities such as Houston and Corpus Christi.

The development has affected orders that should have been heading to some sub-Saharan African (SSA) countries like Ghana, resulting in the return of some petroleum products to the US to shore up demand in that country.

Sources also say the current summer conditions in Europe have doubled the demand for petrol, further impacting the price of crude currently trading at $54 a tonne.

The cumulative effect of the two factors is likely to cause price hikes in petroleum products in Ghana.

Per calculations, a gallon of diesel now selling at ¢18.58 pesewas could go to a little over ¢20, while a gallon of petrol which goes for over ¢18 might go up to ¢21.15 pesewas.

But consumers in Ghana can heave a sigh of relief because of the current policy which gives the power to the over 90 Oil Marketing Companies to set their own prices.

Sources say it is unlikely all the OMCs will increase their prices by the margin, adding the price hike will be for a moment until high demand for crude wanes when winter comes.

Leave a Reply

x

Check Also

Ghana among countries with most ‘bounced’ US visa applications again

Ghana continues to rank among the countries with the highest United States Visa application denial rates, ...

Tema port: Customs seize under-declared container from China

A 40-footer container which was under-declared by an importer has been intercepted by Customs officials ...

NHIA funding gap to rise to GHC 458.25m by 2019

The National Health Insurance Authority(NHIA) funding gap is projected to rise to GHC458.25m within the ...