The Chamber of Petroleum Consumers (COPEC) has called for the reduction of fuel taxes, following its prediction of increment in fuel prices by 5.7% within the second pricing window of August 2023 which begins in the next 48 hours.

According to COPEC, indications based on the pump prices of Petrol and Diesel are likely to increase averagely by about 5.7% over the current mean price of GHS12.45/L across the country whilst LPG prices will increase by about 11.9%.

It revealed that the basis of projections for the coming window are that prices of finished products on the international market has shot up averagely around 11% for both petrol and diesel.

Additionally, it noted that crude price has been increased by 6.79% from the mean price of $80.67/barrel to $86.15/barrel, even though the forex or Dollar exchange rate has relatively decreased from a previous average of GHS11.7185 to GHS11.4538 (-2.26%) per $1.

“The second pricing window of the Month of August 2023 is set to commence by the next 48 hours… COPEC is by this advocating for reduction or to take off some of the fuel taxes to lessen the burden on consumers.”
Chamber of Petroleum Consumers

Contained in a statement dated August 14, 2023, signed by the Executive Secretary of COPEC, Duncan Amoah, it explained that the projected retail figures for Petroleum products starting from Wednesday the 16th of August 2023, for Petrol will be GHS12.97/L.

Furthermore, COPEC expressed that diesel may likely go up to GHS13.43/L, while the Mean Price for Petrol and Diesel will be GHS13.20/L and that of LPG, GHS12.30/kg.

“Thus, for a 14.5 kg LPG cylinder, it is expected to be selling at GHS178.36 within the window. All Pump Prices are expected to be within (±5%) error margin of COPEC’s prediction.”
Chamber of Petroleum Consumers

International market hikes affect local consumption

Elaborating on the projections for Petrol, COPEC revealed that with the international price increasing from $898.55/MT to $965.58/MT (7.46%), the retail price works up to GHS12.97/L. Thus, it indicated that petrol is expected to increase by 4.37% of the current mean Pump retail price of GHS12.40/L, to close selling between GHS12.32/L and GHS13.62/L within ±5% of COPEC’s prediction.

On the projections for diesel, COPEC underscored that with the international benchmark prices increasing from $786.73/MT to $902.15/MT (14.67%), the expected mean retail pump price for the next window shall be GHS13.43/L. Thus, it explained that diesel is expected to increase by about 7.0% of the current Mean Pump retail price of GHS12.49/L to be selling between GHS12.76/L and GHS14.10/L within ±5% of COPEC’s projection.

“The Mean price of Petrol and Diesel for the coming window per the numbers shall be 13.20/L with mean pump retail price range of GHS12.54/L and GHS13.86/L, within ±5% of COPEC’s prediction. With the international benchmark price increasing from $423.75/MT to $547.79/MT (29.27%) the projected retail price of LPG is expected to be selling averagely at GHS12.30/kg. Thus, within ±5% error, LPG is expected to be sold between GHS11.69/kg and GHS12.92/kg.”
Chamber of Petroleum Consumers

In light of the increment, COPEC also urged government to do all it can to reduce taxes on LPG or to subsidize the price of LPG to promote or encourage its nationwide accessibility and usage which will eventually help save the environment.

In addition, it noted that currently, the total taxes and levies is about 25% of the retail prices of Petrol and Diesel, which government must reconsider.