Fuel prices expected to rise

Fuel prices in Ghana are projected to experience a significant increase in the second pricing window of August 2023, according to the Chamber of Petroleum Consumers (COPEC).

The organisation forecasts a potential rise of approximately 5.7% within the next 48 hours, impacting both petrol and diesel costs.

Currently, the average price at the pumps stands at GH¢12.45 per liter. Additionally, the price of Liquified Petroleum Gas (LPG) is expected to surge by around 11.9% during the same period.

COPEC’s Executive Secretary, Duncan Amoah, explained that these projections are based on several factors, including an average 11% rise in international market prices for petrol and diesel. Furthermore, the cost of crude oil has escalated by 6.79%, from a mean price of $80.67 per barrel to $86.15 per barrel. It’s noteworthy that despite a decrease in the foreign exchange rate (Dollar to Ghanaian Cedi) from GHS11.7185 to GHS11.4538 (-2.26%) per $1, fuel prices are still anticipated to climb.

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Effective from Wednesday, 16 August 2023, COPEC estimates that petrol will be retailed at GH¢12.97 per liter, diesel at GH¢13.43 per liter, and the mean price for both petrol and diesel to be around GH¢13.20 per liter. LPG, meanwhile, is projected to be priced at GH¢12.30 per kilogramme.

COPEC acknowledges the potential impact on consumers and calls for government intervention to alleviate the burden.

The organisation encourages the reduction of taxes on LPG or subsidies to promote its accessibility and environmental benefits.

At present, approximately 25% of retail prices for petrol and diesel consist of taxes and levies. COPEC advocates for a reconsideration of these charges to support consumers.

The rise in fuel prices, as forecasted by COPEC, is in line with the organisation’s predictions, which are expected to remain within a ±5% margin of error.

Source: classfmonline.com