Fuel prices to hit GH¢8 per liter soon; adopt dual pricing method – COPEC to gov’t

The Chamber of Petroleum Consumers Ghana (COPEC) has asked the government to adopt measures aimed at cushioning Ghanaians against the astronomical increase in petroleum prices.

COPEC is also predicting that the price per litre of the product will hit GH¢8 by March 2022.

Executive Secretary of COPEC, Duncan Amoah, on Eyewitness News lamented that government is doing too little to bring down the prices of fuel and must immediately devise means to address the incessant increments.

“In real terms, fuel price increasing these days happens to be one of the very things pushing the economy to the brink. The year began with fuel price at GH¢6.6. Unfortunately, we now have some OMCs selling at GH¢7.50. It’s our estimation that probably by the end of March, if international price trends continue to move as it is doing currently, we would be crossing the GH¢8 mark.”

Prices of fuel have gone up at the pumps across the country because the Price Stabilization and Energy Recovery levy, which is a key component of the fuel price build-up, has been restored by the National Petroleum Authority (NPA) after it was suspended for about three months.

The levy was suspended last year as a means of reducing the burden on consumers.

Already, COPEC has called for the withdrawal of the levy and has now urged the government to adopt the dual pricing module to stabilise fuel prices and the accompanying economic difficulties.

“Our expectation as a chamber is that, authorities should be looking for ways to bring down fuel prices. One could bring the dual pricing method where anytime international market prices go up, they ease down on the taxes and anytime international prices decline, they can [apply] the full extent of the taxes because fuel prices going up on the world market is of greater benefit to Ghana than we are currently making it to be.”

“So as you can see, we have crossed the GH¢7 mark, it’s quite certain that by the second window of February which will commence in about 12 days, prices will go up again”, Duncan Amoah added.

The National Petroleum Authority (NPA), in October 2021 approved the removal of the Price Stabilisation and Recovery Levy (PRSL) on petrol, diesel, and LPG for two months as requested by President Akufo-Addo.

The PSRL is 16 pesewas per litre on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel and fourteen pesewas per kilogram (GHp14/Kg) on LPG.

Currently, some Oil Marketing Companies are already selling fuel beyond the GH¢ 7 per litre mark, which means the reintroduction of the levy will send prices further above GH¢ 7 per litre.

The Institute for Energy Security (IES) has already said the prices of petroleum products are expected to increase at various pumps across the country due to an upsurge in the prices of the commodity on the international market.