The price of petrol is expected to increase by 3.7%, the Chamber of Petroleum Consumers (COPEC) has predicted.
COPEC in a statement said Brent crude plunged by 10.7% to $73.45/barrel on 26 November 2021 and the OPEC Reference Basket (OPB) plunged by 6.9% to $76.09/barrel on the same date.
According to COPEC, the plummeting crude oil prices was due to the new Omicron Variant new COVID-19 Omicron (B.1.1.529) variant which restricted mobility in some countries, and the expectation of gradual increment of oil production by the Organisation of Petroleum Exporting Countries (OPEC) +.
“However, Brent crude futures settled up $1.56, or 2.1%, at $76.85 a barrel, the highest close since Nov. 26, and a gain of 4.5% on the week as at 23rd December, 2021.
“Additionally, the U.S. West Texas Intermediate (WTI) crude futures ended up $1.03, or 1.4%, at $73.79 a barrel, to rise 4.1% on the week as at 23rd December, 2021. The surge in crude oil prices is due to Libyan supply disruptions cutting supply of about 300,000 b/d and the lower anxiety towards the new Omicron variant because of the perception that, the variant is containable than previously feared.â€
“In Ghana, the National Petroleum Authority (NPA) indicated that the benchmark price for
petrol/MT for setting ex-pump price of petrol in the 1st Window of January 2022 is $707.95/MT. Again, the Benchmark price for diesel/MT for setting the ex-pump price in the same widow is $641.38/MT. The NPA set the Ghana Cedi at Ghc6.4040 against a dollar.
“Using the conversion factor of 1324.4 for petrol from a metric tonne to litres, 1183.43 for diesel from a metric tonne to litres and a maximum total marketer’s margin and dealer’s margin of Ghc0.75 based on the flexibility of OMC margins, as well as a forward rate of Ghc6.4040 to a dollar, the ex-pump prices for petrol is expected to surge by 3.7% and diesel is expected to surge by 2.5%. Averagely ex-pump prices are expected to surge by 3.1% in the 1st Window of January, 2022 from 1st to 16th January.â€
Attached is the full statement