Fuel prices projected to increase by Friday, Jan. 17 2025 due to cedi depreciation

Prices of petroleum products are set to rise slightly at fuel pumps starting Friday, January 17, 2025.

This anticipated increase is attributed to a surge in global crude oil prices and recent depreciation of the cedi against major currencies.

The local currency has had a challenging start to the year, recording a 0.38% depreciation against the US dollar in the retail market.

In an interview with Joy Business, Dr. Riverson Oppong, Chief Executive of the Chamber of Oil Marketing Companies (OMCs), highlighted the key factors behind the expected price adjustments.

“Initially, the indicators were stable, but we’ve recently seen a shift in global crude oil prices and the cedi’s strength. Within just 24 hours, global Free-On-Board plant prices have risen by 0.33%. At the same time, the exchange rate continues to fluctuate,” he explained.

Dr. Oppong noted that this combination of rising crude prices and currency volatility has led to an increase in petroleum product costs.

“We’re observing price hikes driven by the upward trend in plant prices and the instability of the forex market. These factors are directly impacting petroleum prices at the pump,” he added.

He emphasized that oil marketing companies are bound by regulatory guidelines set by the National Petroleum Authority (NPA) and must adjust prices accordingly.

“Oil marketing companies are obligated to comply with the regulator’s pricing framework. The floor price set by the NPA determines the minimum price we can sell at. Since the floor price for the current pricing window differs from the next, we are required to reflect this in our pricing,” he said.

The adjustments are expected to ensure compliance with industry regulations while aligning with global and local economic conditions.