Oil prices continue to rise on the international market, as Brent crude went up by $4 to hit $117 per barrel, the highest level since 2013, as Russia invasion of Ukraine entered day eight.
This is good news for government as it continues to enjoy windfall from the price of the commodity, after budgeting $62 per barrel in the 2022 Budget and Economic Policy.
However, consumers will bear the brunt for the rising commodity, as they will be required to pay more for fuel at the pumps unless government intervenes.
Already, fuel prices have gone up between 2% and 6%, a situation, some experts want government to cushion consumers against the rising petroleum prices.
Speaking to Joy Business, Executive Director of the Institute for Energy Security, Nana Amoasi VII, said government must intervene to cushion consumers against the shocks, calling for a revitalization of the Tema Oil Refinery.
“We expect government to put in measures to stop the consistent rise in fuel prices on our local market. Of course there are ways to deal with this.”
The Executive Secretary of the Chamber of Petroleum Consumers, Duncan Amoah, also believed although consumers’ should embrace price hikes at the pumps, an alternative measure can be put in place by government.
“We’re not surprise that crude oil move from $96 overnight to $102. We are certain that if these tensions continue, we could be hitting $110 and probably $120 in no time”.
“We expect the authorities to sit immediately and devise a proper containment strategy as far as pump prices is concerned. Once international market prices go up, Ghana as an oil producing and exporting country is simply going to get a lot more revenue”, he stressed.
OPEC decision to increase output to 400,000 barrels supported price surge
Reports also say the decision by OPEC+ to maintain an increase in output by 400,000 barrels per day (bpd) in March 2022, despite the price surge to record highs also supported the prices.
“We expect WTI prices could test $120 a barrel and Brent prices could test $125 a barrel in the upcoming sessions,” Rahul Kalantri, Vice President for Commodities, Mehta Equities in India said.
The incessant rise in the price of crude oil is a major worry to most global economies.
Meanwhile, some leading players in the petroleum downstream industry have begun increasing prices at the pumps.
For instance, Shell is selling a litre of diesel and petrol at ¢8.29 respectively.
It’s coming after Total Oil increased its prices by a similar margin.
Many Oil Marketing Companies, largely medium and small ones are also waiting to take a cue from GOIL before adjusting their prices at the pumps.