Petrol and diesel prices shoot up 5.7%, LPG by 11.9%

The cost of petrol and diesel is poised to climb by an estimated average of 5.7%, starting from Wednesday, August 16, 2023, and extending over the next two weeks.

This increase comes on the heels of the current mean price of ¢12.45 per litre for both petrol and diesel. The price of Liquefied Petroleum Gas (LPG) is also projected to experience a substantial uptick of about 11.9%.

Attributed to an 11% upswing in global prices of refined petroleum products and a concurrent 6.79% spike in the price of crude oil, this anticipated price uptick has been confirmed by the Chamber of Petroleum Consumers (COPEC).

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This surge occurs despite a slight dip in the forex rate, with the dollar exchange rate decreasing from an average of ¢11.7185 to ¢11.4538 (-2.26%) per $1.

The Chamber of Petroleum Consumers (COPEC) posits that all pump prices are anticipated to fall within the (±5%) margin of error of COPEC’s estimations. Under the new pricing structure, the average cost of petrol is expected to settle at ¢12.97 per litre, while diesel will command a price of ¢13.43 per litre.

For households relying on LPG, the financial burden is likely to intensify, with the 14.5-kilogram LPG cylinder predicted to retail at an approximate rate of ¢178.36 during this time period.

Duncan Amoah, the Executive Secretary of COPEC, weighed in on the situation, urging the government to consider reducing taxes on LPG or subsidizing its price. Such measures, he argues, would not only enhance the accessibility and adoption of LPG across the nation but would also contribute to environmental preservation—an outcome that holds far-reaching implications.

Furthermore, COPEC is advocating for the reduction or elimination of certain fuel-related taxes in a bid to alleviate the financial strain on consumers. Presently, taxes and levies comprise a substantial 25% of the overall retail prices of both petrol and diesel. As the price trajectory climbs, consumers are bracing themselves for the inevitable pinch at the pump, while advocacy for more affordable and sustainable energy solutions gains momentum.