Duncan Amoah, the Executive Secretary of COPEC, cautioned that if the government fails to take action by Monday, consumers may be faced with a significant 9% hike in LPG prices, which would be a substantial addition to the current cost per kilogram.

He warned that, as of Monday, July 01, 2024, consumers may face a significant price hike, with diesel prices likely to increase by approximately 6-7% per liter and petrol prices expected to rise by around 2% per liter, relative to current prices.

“These adjustments will be primarily due to the fact that F.O.B prices for petrol have seen about a $12 jump over the window. For diesel, you are seeing about a $50 jump on F.O.B. over the window. You are seeing increases in F.O.B. prices uh within the period and so like I indicated, petrol has done about $12 a metric ton uh diesel you are seeing about $50 extra a metric ton LPG you are seen about another $ 40 over the period”.
Duncan Amoah

Duncan Amoah further observed that the cedi’s value has also depreciated significantly, as reflected in the Chamber Bulk Oil Distribution Company’s computations for the current window, which indicate an exchange rate of around 14.9.

He noted that in contrast, the current Seaboard exchange rate stands at approximately 15.50-15.55, representing a significant decline of about 50 pesewas over the past two weeks, ahead of the next window.

Amoah suggested that the government has the ability to stabilize petrol prices within the 14-15 F.O.B (Free On Board) range, without necessitating further price increases for Ghanaians, providing a potential respite from escalating fuel costs.

He emphasized that the government must prioritize addressing the looming surge in LPG costs, which is projected to skyrocket by a significant 9% within the current window, warranting urgent attention to mitigate the impact on consumers.

LPG Price Hike: Government Urged to Act

Moreover, Duncan Amoah cautioned that if the government allows the LPG price surge to go unchecked, it will disproportionately burden ordinary citizens, and urged the government to consider reducing taxes and levies on these essential products to alleviate the financial strain on consumers.

He lamented that, regrettably, the past one to two months have witnessed a surge in levies and margins imposed on these essential products, exacerbating the burden on consumers, rather than providing relief.

Amoah pointed out that, recently, the Unified Petroleum Fund (UPF) margin was increased by five pesewas, justified by the need to cover the cost of fuel consumed by security agencies, which is now being passed on to the public, effectively shifting the burden to consumers.

“Unfortunately, we seem to rather be adding onto the levies the margins the backups that we have on petroleum products the time that prices seem to be surging. We should rather be thinking of reducing them to also contain the level of inflation we have as far as petroleum products and its impact on the economy is concerned”.
Duncan Amoah

Duncan Amoah also forecast that fuel prices are likely to skyrocket, surpassing GH¢16 or even GH¢17 per liter, a stark warning of further pressure on consumers’ pockets.

This follows Nana Amoasi VII’s, Executive Director of the Institute for Energy Security (IES), warning of a sharp surge in fuel prices expected in the coming weeks, foreseeing a significant increase.

Consumers of fuel in Ghana are preparing for a potential increase in prices following the National Petroleum Authority’s (NPA) decision to reinstate the Price Stabilization and Recovery Levy on petroleum products, which had previously been suspended.

If the proposed petroleum price hike takes effect, it may have a ripple effect, leading to increased costs for food and transportation, ultimately placing a significant burden on consumers.