COPEC Forecasts 4% Increase in Petroleum Prices Starting July 16, 2024

Accra, July 15, 2024 – The Chamber of Petroleum Consumers (COPEC) has announced an expected 4% hike in petroleum product prices effective Tuesday, July 16, 2024. This increase is attributed to the cedi’s depreciation against the dollar, shifting from $1.2779 to $1.462 (-1.205%).

Duncan Amoah, COPEC’s Executive Secretary, has detailed the projected price changes: Petrol will rise to GHS14.795 per liter, Diesel to GHS15.332 per liter, and LPG to GHS16.205 per kilogram. Consequently, a 14.5 kg LPG cylinder will cost approximately GHS234.97.

COPEC urges the government to reduce taxes or subsidize LPG to enhance accessibility and protect the environment.

COPEC’s Official Statement:

Chamber of Petroleum Consumers – (COPEC)
Accra
13 July 2024

Petroleum Product Prices Expected to Increase by 4% Starting July 16, 2024

Analysis of Projection

Barring any significant last-minute changes in global petroleum prices, COPEC indicates that the pump retail prices for Petrol, Diesel, and LPG will rise due to the cedi’s further depreciation against the dollar, from an average of $1.2779 to $1.462 (-1.205%) in the next retail pricing window.

Projected Prices Starting July 16, 2024:

• Petrol: GHS14.795/L
• Diesel: GHS15.332/L
• Mean Price for Petrol and Diesel: GHS15.064/L
• LPG: GHS16.205/kg

A 14.5 kg LPG cylinder is expected to sell at GHS234.97.

Detailed Breakdown:

Petrol:
With the international price increasing from $816.61/MT to $843.00/MT (3.23%), the retail price is projected to be GHS14.795/L. This represents a 3.75% increase from the current mean pump retail price of GHS14.26/L, with an expected range of GHS14.06/L to GHS15.53/L.

Diesel:
With the international FOB price rising from $788.32/MT to $792.32/MT (1.80%), the projected mean retail pump price for the next window is GHS15.332/L. Diesel is expected to rise by about 4.69% from the current mean pump retail price of GHS14.64/L, with an expected range of GHS14.57/L to GHS16.10/L.

Mean Price of Petrol and Diesel:
The mean price for the upcoming window is projected to be GHS15.064/L, a 4.23% increase from the current mean price of GHS14.45/L. The mean pump retail price is expected to range from GHS14.31/L to GHS15.82/L.

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 average GHS16.205/kg. Therefore, within ±5% error, LPG is expected to sell between GHS15.39/kg and GHS17.01/kg.

Remarks:

1. Government Action Needed: COPEC emphasizes the need for the government to reduce taxes on LPG or subsidize its price to promote accessibility and environmental protection.
2. Tax Reduction: Currently, total taxes and levies on retail prices of Petrol and Diesel are about 22.56%. COPEC calls for a reduction in tax rates or the removal of some fuel taxes to ease consumer burden. Alternatively, a formula could adjust total levies based on the dollar-to-cedi rate.
3. Reviving Tema Oil Refinery (TOR): COPEC urges the government to expedite efforts to get the Tema Oil Refinery operational again to reduce the importation of finished products and associated fuel contamination risks.

Signed,
Duncan Amoah,
Executive Secretary