Pointers on Marginal Fuel Price Increases

Before the increase was announced at the various pumps, prices had remained stable since the beginning of June, 2018.

The Price Stabilisation and Recovery levies (PSRL) are currently zero on both petrol and diesel since 16th April.

If you look at petrol, it is 12 pesewas but has been reduced to zero…what it means is that, if government had allowed the 12 pesewas to remain, consumers will be paying GHS5.02, representing 3.51 percent increase.

That of diesel which is 10 pesewas and has also been reduced to zero and that positively impacted the current price on diesel. But for the PSRL reduction, diesel would have been GHS5.04 (a 3.92 percent increase) and not the current GHS4.94, which represents 1.86 percent.

The NPA projected a 1.99% increase for petrol and 1.57% increase for diesel within this Pricing window (i.e. 16th – 31st Aug 2018).

The increases seen on the market are therefore within the expected price changes.

This is lower than the projected 2.06 per cent before the PSRL.