The Chamber of Petroleum Consumers (COPEC) has suggested that the prices of petrol and diesel at the fuel pumps may see a modest uptick of approximately 0.90% above the current national average of GH¢12.94 per liter.
In a statement released by COPEC’s Executive Secretary, Duncan Amoah, it was further indicated that the prices of liquefied petroleum gas (LPG) could potentially witness an increase of approximately 1.82%.
Amoah explained the basis for these projections, stating, “Our analysis takes into account several key factors. Firstly, the international market prices for refined petroleum products, namely gasoline and diesel, have experienced a slight uptick, with an average increase of around 0.66%. Additionally, the cost of crude oil has risen by 4.90%, climbing from an average of $85.70 per barrel to $89.90 per barrel.”
He also noted that the exchange rate of the US dollar to the Ghanaian cedi has seen a moderate increase of 0.69%, moving from an average of GHS11.3950 to GHS11.4730 per $1.
COPEC’s projections have raised concerns among consumers, who may soon have to contend with higher fuel prices if these forecasts materialize.
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CHAMBER OF PETROLEUM CONSUMERS – (COPEC)
ACCRA
14 September 2023
DIESEL PRICES LIKELY TO GO UP WHILES PETROL PRICES COULD REMAIN UNCHANGED FOR THE SECOND WINDOW OF SEPTEMBER 2023.
Indications are that the mean pump price of Petrol and Diesel is likely to increase by about 0.90% over the current mean price of GHS12.94/L across the country whilst LPG prices may increase by about 1.82%.
The following basic information forms the basis of projections for the coming window, that is; prices of finished products on the international market has slightly increased averagely by about 0.66% for both petrol and diesel while Crude price has been increased by 4.90% from the mean price of $85.70/barrel to $89.90/barrel. The forex or Dollar exchange rate has relatively increased by 0.69% from a previous average of GHS11.3950 to GHS11.4730 (0.6845%) per $1.
The following shall likely be the projected retail figures for Petroleum products to within ±5% of COPEC’s projection starting from Saturday, the 16th of September 2023.
Petrol .. GHS13.02/L
Diesel .. GHS13.84/L
The Mean Price for Petrol and Diesel..GHS13.43/L
LPG.. GHS12.61/kg
Thus, a 14.5 kg LPG cylinder, is expected to be selling at GHS182.79 within the window.
PETROL
With the international price slightly decreasing from $989.48/MT to $969.60/MT (-2.01%), the retail price works up to GHS13.02/L
Thus, Petrol is expected to decrease by -0.87% of the current mean Pump retail price of GHS12.85/L, to close selling between GHS12.37/L and GHS13.67/L within ±5% of COPEC’s prediction.
Looking at the marginal decrease, COPEC expects Petrol prices to remain unchanged.
DIESEL
With the International benchmark fuel price increasing from $912.68/MT to $943.03/MT (3.33%), the expected mean retail pump price for the next window shall be GHS13.84/L
Thus, Diesel is expected to increase in price by about 2.63% of the current Mean Pump retail price of GHS13.03/L to be selling between GHS13.15/L and GHS14.53/L within ±5% of COPEC’s projection.
Mean Price of Petrol and Diesel
The Mean price of Petrol and Diesel for the coming window per the figures shall be 13.43/L with mean pump retail price range of GHS12.76/L and GHS14.10/L, within ±5% of COPEC’s prediction.
LPG
With the international benchmark price increasing from $557.65/MT to $573.50/MT (2.84%) the projected retail price of LPG is expected to be selling averagely at GHS12.61/kg.
Thus, within ±5% error, LPG is expected to be sold between GHS11.98/kg and GHS13.24/kg
Remarks:
Government is encouraged to do all it can to reduce taxes on LPG or to subsidise the price of LPG to promote or encourage its nationwide accessibility and usage which will eventually help save the environment.
Currently, the total taxes and levies is about 23% of the retail prices of Petrol and Diesel.
COPEC is requesting for tax rates reduction or to take off some of the fuel taxes to lessen the burden on consumers.
We further appeal to the government to speed up processes to get the Tema Oil Refinery (TOR) back on stream in order to avoid the importation of finished products.
Signed.
Duncan Amoah.
Executive Secretary.