A statement signed by Mr Alexander Mould, Acting CEO of NPA, said the new prices take effect from December 29.
It said the prices of petrol and diesel will go up by 15 per cent each at GHp 175.48 per litre and GHp 177.09 per litre respectively while LPG will go up by 30 per cent at GHp 136.19 per kilo.
This means a 12.5 kg cylinder will now sell at GH¢17.02 while a 14.5 kg cylinder will sell at GH¢19.75.
The prices of kerosene, Liquefied Petroleum Gas (LPG) and Renewable Fuel Oil (RFO) remain unchanged.
Kerosene will continue to sell at GHp 91.00 per litre, Premix fuel at GHp54.27 litre and Renewable Fuel Oil (RFO) at GHp83.93.
“The NPA will be monitoring the international prices and intends not to decrease or increase petroleum products pump prices if the average prices of crude oil consistently remain within the US$107/barrel to US$111/barrel range,” the statement said.
It added that the NPA would continue with its bi-weekly review of the international prices to ensure that the suppliers of petroleum products were paid the full cost recovery price using import parity.
Giving a background to the increases, the NPA said in January 2011, it announced petroleum products pump prices based on prevailing international crude oil and petroleum prices at the time – crude oil price (Brent Crude) was at US$92/barrel, and the exchange rate was at GH¢1.4629 per US$1.00.
It noted that the average per barrel price of crude oil for 2011 was USD111 with current prices at US$110, which was approximately a 20 per cent increase since the last petroleum products pump price review when crude oil prices were at US$92/barrel.
“Also, the current exchange rate is at GH¢1.5464/US$ which implies the cedi has depreciated by about 5.7 per cent since January 4th, 2011.”
NPA said the culminating effect of international crude price movement and depreciation of the cedi implied an over 25 per cent increase (in Ghana cedi terms) in the cost of procuring crude oil and petroleum products since January 4, 2011.
“By the end of 2011, the government of Ghana would spend over GH¢450 million in subsidies for the 2011 year.“
The NPA said the current situation of crude oil prices being currently at US$110/barrel and the exchange rate of GH¢1.5464/USD therefore calls for the price hikes.