The Chamber of Petroleum Consumers (COPEC) has warned that Ghana may face significantly higher fuel prices by the end of 2024 if tensions in the Middle East escalate and the cedi continues to weaken.

This forecast follows recent upward adjustments in fuel prices by some Oil Marketing Companies (OMCs) during the first pricing window of October, after four consecutive weeks of decline.

For instance, Shell has increased the price of its petrol, previously sold at GH¢13.49 per litre in late September, to GH¢13.79. Similarly, the price of diesel, which was GH¢13.99 per litre, has risen to GH¢14.35.

These increases have raised concerns among consumers who are already dealing with a high cost of living.

Duncan Amoah, the Executive Secretary of COPEC, stated in an interview with Citi Business News on Wednesday, October 2, that the ongoing geopolitical tensions involving Israel, Hamas, and Hezbollah in Lebanon could have a significant impact on Ghana, leading to consumers needing to spend more to fill their tanks.

He also pointed out that the gold-for-oil policy is unlikely to alleviate the anticipated price hikes.

“You could end up paying more than you currently are paying because the Cedi is still depreciating. Israel, Hezbollah, Hamas…the triangle, whatever tensions if they escalate, will simply mean the supply side will be hampered and then demand at this time of the year is likely to surge.

“So if demand should go up due to manufacturing and aviation systems connecting, then the expectation will be that global prices or international market prices will go up.

“Unfortunately for us in Ghana, we don’t have any safety nets to cushion us if they do. From where we sit, there is the possibility that Ghanaians may end the year paying a little more for fuel.”