Fuel prices set to increase by 4% on July 16 - COPEC

The prices of petrol, diesel, and LPG will all see a 4% rise starting on Tuesday, July 16, 2024, as announced by the Chamber of Petroleum Consumers (COPEC).

Duncan Amoah, the Executive Secretary of COPEC, attributed this increase in prices to changes in global petroleum Free on Board (FOB) prices and the depreciation of the local currency.

Currently, the Cedi is selling at GH¢15.66 to $1 and GH¢20.27 for £1 at various forex bureaus.

Previously, petrol was priced at GH¢14.795 per litre, while diesel was GH¢15.332 per litre at various pumps.

The mean price for petrol and diesel from Tuesday will be GH¢15.064 per litre.

Within this pricing window, a 14.5 kg LPG cylinder is expected to be sold at GH¢234.97.

"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 effective Tuesday, July 16, primarily due to further depreciation of the cedi relative to the dollar rate from an average of $1:GH¢15.2779 to $1:GH¢15.462 (-1.205%) in the next retail pricing window, beginning July 16, 2024," he said.

COPEC has urged the government to reduce some fuel taxes to ease the burden on consumers.

SA/OGB

Read the statement by COPEC below;

CHAMBER OF PETROLEUM CONSUMERS – (COPEC)

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.

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