The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has revealed that fuel prices are set to increase from August 1.
According to him, the prices of finished products on the international market have shot up by average of around 12% for both petrol and diesel whiles crude price has increased by 10.53% from the mean price of $75.85/barrel to $83.84/barrel. He explained that this is the situation even though the forex or Dollar exchange rate has relatively decreased from a previous average of GHS11.7848 to GHS11.6433 (-1.20%) per $1.
“Pump prices of Petrol and Diesel are likely to increase on average by about 9% over the current mean price of GHS11.90/L across the country whilst LPG prices increase by about 20%.”Chamber of Petroleum Consumers
Contained in a statement, Mr Amoah highlighted the projected retail figures for Petroleum products starting from Tuesday, August 1. He revealed that with the international price increasing from $820.27/MT to $963.75/MT (17.49%), the retail price works up to GHS13.27/L.
“With the International benchmark prices increasing from $728.11/MT to $862.25/MT (18.42%), the expected mean retail price for the next window shall be GHS13.39/L Thus, Diesel is expected to decrease by about 10.14% of the current Mean Market price of GHS11.94/L to be selling between GHS12.72/L and GHS14.06/L within ±5% of COPEC’s projection.”Chamber of Petroleum Consumers
Government urged to reduce taxes on LPG
Touching on the mean Price of Petrol and Diesel, Mr Amoah stated that the mean price of Petrol and Diesel for the coming window per the numbers shall be 13.33/L with a mean pump price range of GHS12.67/L and GHS14.00/L, within ±5% of COPEC’s prediction.
Furthermore, Mr Amoah indicated that LPG will likely sell for GH¢11.79/kg. Thus, a 14.5 kg LPG cylinder, is expected to be selling at GHS170.91. Within the international benchmark price increasing from $319.09/MT to $494.75/MT (55.05%), he explained that the projected retail price of LPG is expected to be selling average at GHS11.79/kg.
“Thus, within ±5% error, LPG is expected to be sold between GHS11.20/kg and GHS12.38/kg”Chamber of Petroleum Consumers
In light of the predicted increment in petroleum prices, the Executive Secretary of COPEC encouraged government to do all it can to reduce taxes on LPG. Alternatively, he urged government to subsidize the price of LPG to promote or encourage its nationwide accessibility and usage which will eventually help save the environment.
“In addition, currently, the total taxes and levies are about 25% of the retail prices of Petrol and Diesel. 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
It will be recalled that the Chamber of Petroleum Consumers-Ghana (COPEC), in May this year equally predicted marginal increase in petroleum products.
In a statement, the energy think tank stated that it expected petrol and diesel to be sold at GH¢ 9.538 and GH¢ 10.829 per litre respectively, which brought the average price of both products for that window to GH¢10.183 a litre.
These increases followed the regular fuel price changes per window, international fuel prices, the applicable dollar-exchange rate and the taxes on fuel. The calculations were also based on the current average crude price of $ 104.56 per barrel, resulting in $ 1,057.44 per metric tonne for petrol, and $1,138.33 metric tonne for diesel on the international market.
Playing a key role in the projection was the exchange rate of 1$ to GH¢7.8165, and the government’s tax rebate of 15p per litre still in place.
Comparatively, COPEC revealed that the average price went up by 19p per litre(1.94%) over that of the previous window, with petrol going up by 7p a litre (0.7%) and diesel also being up by 32p per litre (3%).