Fuel prices to go up by 4% on Tuesday – COPEC predicts

The Chamber of Petroleum Consumers (COPEC) has predicted a 4% rise in petroleum product prices in the next pricing window, effective Tuesday, July 16, 2024.

According to COPEC, indications across the downstream petroleum market show that the pump retail prices of all three products – Petrol, Diesel, and LPG – will increase on Tuesday.

In a statement dated Sunday, July 14, Duncan Amoah, Executive Secretary of COPEC, attributed the potential increase to the further depreciation of the cedi relative to the dollar rate, from an average of $1:GHS15.2779 to $1:GHS15.462 (-1.205%).

COPEC predicts that Petrol prices will rise to GHS14.795/L, Diesel to GHS15.332/L, and the Mean Price for Petrol and Diesel to GHS15.064/L, while LPG is likely to be sold at GHS16.205/kg. A 14.5 kg LPG cylinder is expected to be sold at GHS234.97 within the window.

COPEC reiterated its calls for the government to reduce taxes on LPG or subsidize its price to promote and encourage nationwide accessibility.

“COPEC maintains that the 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 firewood.”

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.