The Chamber of Petroleum Consumers (COPEC) has projected a 4% hike in the prices of petroleum products in the upcoming pricing cycle, set to commence on Tuesday, July 16, 2024.
According to COPEC, signals from the downstream petroleum sector indicate that retail prices at the pump for Petrol, Diesel, and LPG are expected to climb.
In a statement released on Sunday, July 14, Duncan Amoah, Executive Secretary of COPEC, linked the anticipated price surge to the continued weakening of the cedi against the dollar, shifting from an average rate of $1.2779 to $1.462 (-1.205%).
COPEC’s forecasts suggest Petrol prices could escalate to GHS14.795 per liter, Diesel to GHS15.332 per liter, and the Mean Price for Petrol and Diesel to GHS15.064 per liter, while LPG may rise to GHS16.205 per kilogram. The expected cost for a 14.5 kg LPG cylinder is anticipated to reach GHS234.97 during this period.
Additionally, COPEC reiterated its appeal to the government to either reduce taxes on LPG or provide subsidies to facilitate wider access and utilization across the country.
“COPEC emphasizes the necessity for government action to lower taxes on LPG or introduce subsidies to enhance its accessibility nationwide, thereby contributing to environmental preservation by minimizing reliance on firewood,” emphasized Amoah.
Read below the statement by COPEC
CHAMBER OF PETROLEUM CONSUMERS – (COPEC)
ACCRA
13 July 2024
PETROLEUM PRODUCT PRICES EXPECTED TO GO UP ACROSS PUMPS BY 4% IN THE NEXT WINDOW, BEGINNING 16 JULY 2024
Analysis of Projection
Barring any unforeseen last minute major changes in global Petroleum FOB prices, indications across the downstream Petroleum market are that, the pump retail prices of all three products Petrol, Diesel and LPG, will go up on effective Tuesday, 16th of July, primarily due to further depreciation of the cedi relative to the dollar rate from an average of $1:GHS15.2779 to $1:GHS15.462P ( -1.205%) in the next retail pricing Window, beginning 16 July 2024.
The following will constitute the projected mean retail prices for the Petroleum products to within ±5% of COPEC’s projection starting from Tuesday, 16 July 2024.
Petrol .. GHS14.795/L
Diesel .. GHS15.332/L
The Mean Price for Petrol and Diesel..GHS15.064/L
LPG.. GHS16.205/kg
Thus, a 14.5 kg LPG cylinder could be expected to be sold at GHS234.97 within the window.
PETROL
With the international price increasing from $816.61/MT to $843.00/MT (3.23%), the retail price works up to GHS14.795/L
Thus, retail price of Petrol is expected to increase by 3.75% of the current mean pump retail price of GHS14.26/L, to close selling between GHS14.06/L and GHS15.53/L , within ±5% range of COPEC’s projected figure of GHS14.795/L.
DIESEL
With the International FOB price increasing from $788.32/MT to $792.32/MT (1.80%), the projected mean retail pump price for the next window shall be GHS15.332L
Diesel is expected to increase in price by about 4.69% of the current mean pump retail price of GHS14.64/L to be selling between GHS14.57/L and GHS16.10/L , within ±5% range of COPEC’s projected figure of GHS15.332/L.
Mean Price of Petrol and Diesel
The mean price of petrol and diesel for the coming window per available parameters shall be GHS15.064/L . The mean price is expected to increase by 4.23% over the current mean price of GHS14.45/L with mean pump retail price range of GHS14.31/L to GHS15.82/L, within ±5% of COPEC’s projection.
LPG
With the international FOB price increasing from $477.80/MT to $536.11/MT (12.20%) the projected retail price of LPG is expected to be averagely at GHS16.205/kg.
Thus, within ±5% error, LPG is expected to be selling between _GHS15.39/kg and GHS17.01/ kg.
Remarks:
1. COPEC maintains that, Government must do all it can to reduce taxes on LPG or to subsidize the price of LPG to promote and encourage its nationwide accessibility and usage which will eventually help save the environment from further degradation by the use of firewoods.
2. Currently, the total taxes and levies on retail prices of Petrol and Diesel are about 22.56%
COPEC is requesting for the reduction of tax rates or to take off some of the fuel taxes to lessen the burden on consumers.
Alternatively, a formula can be adopted to vary the total levies with change in the dollar: Cedi rate.
3. We further appeal to the government not to relent in getting the Tema Oil Refinery (TOR) back on stream in order to avoid or reduce the importation of finished products, with associated fuel contamination.
Signed.
Duncan Amoah.
Executive Secretary.
