The Chamber of Petroleum Consumers (COPEC) has predicted that fuel prices are likely to see a decline in the first pricing window of March 2023.

According to COPEC, this is from the basic assumptions that prices of both petrol and diesel have all declined marginally within the period whiles crude price has also minimally dropped from $82.99/barrel to $82.48/barrel.

“Though the Dollar exchange rate has seen a slight increase from averages of GHS12.4697 to GHS12.8650 (3.17%) per $1, further considering the CBOD rate of about $1=GHS14.00, the following shall form the predicted retail figures for Petroleum products from computations by the technical and pricing team, for the 1st pricing window of March under the price deregulation programme of the National Petroleum Authority, which window commences on Wednesday, 1 March 2023. All understated Predictions are factored to be within (+/-)5%.”
Chamber of Petroleum Consumers

COPEC revealed that with the international price decreasing from $878.41/MT to $849.25/MT, the retail price works up to GHS13.66/L. In light of this, it explained that petrol retail prices are therefore expected to drop by 3.73% from the current Mean value of GHS14.20/L.

Commenting on diesel, the Chamber stated that with the International price decreasing from $854.00/MT to $809.38/MT (-5.22%), and the increase in the dollar rate, the expected mean retail price for the next window shall be GHS13.98/L.

“Thus, diesel prices are therefore expected to drop by 4.04% from the current Mean value of GHS14.57/L. The Mean price of Petrol and Diesel shall be 13.82/L.”
Chamber of Petroleum Consumers

Contained in a statement dated February 27, 2023, COPEC highlighted that the international price increasing from $699.45/MT to $702.50/MT (4.94%) as the projected retail price of LPG is expected to increase by about 4.36% from the current average of 13.86/kg to GHS14.46/kg.

Drop in fuel prices not attributed to gold for oil policy

These expected drops in prices for the second time running since the second pricing window of February 2023, COPEC explained, do not have any correlation with the much-touted Gold for Oil programme as these movements are simply a derivative of market forces at play within the period.

“… We still await the reductions the two cargoes brought in this month will add to relieving the suffering of the petroleum consumer.”
Chamber of Petroleum Consumers

Furthermore, the Chamber expressed that the current high retail prices of LPG have contributed to consumption generally dropping by 12% year on year in 2022. Owing to this, it emphasized that it will be prudent if authorities take a second look at the factors contributing to the high prices of a “commodity which Ghana has in enormous commercial” quantities.

COPEC opined that this is to ensure price stability or decline if the government’s 50% penetration target is to be ever achieved and to continuously promote its usage with the overall environmental promotion in mind.

Prior to this, spokesperson for the Civil Society Organization in the Extractive Industry, Dr. Steve Manteaw, revealed that he did not anticipate the first consignment of the gold for oil programme having any meaningful impact on the petroleum pricing. He stated that the Gold for Oil policy cannot help in reducing the high fuel prices in the country.

Dr Manteaw explained that the quantity received so far into the country does not match up to 10% of the country’s monthly consumption.

In January this year, the Chamber of Petroleum Consumers (COPEC) also urged Ghanaians to disregard reports that prices of petroleum products will be reduced as a result of the Gold for Oil Policy introduced by the government.

The Executive Secretary for COPEC, Duncan Amoah indicated that there will not be any reduction at the respective pumps should the 40,000 tons expected to be distributed hit the market.