Fuel prices to increase by 5.7% -COPEC predicts ahead of second pricing window

Within the second pricing window of August 2023, the Chamber of Petroleum Consumers (COPEC), has predicted fuel prices could increase by 5.7%.

At the moment, the product costs an average of GH¢12.45 per liter when purchased at the pumps.

Within the same time frame, LPG prices will also rise, by about 11.9%.

According to the Chamber, the projected retail prices for the various petroleum products will go into effect on Wednesday, August 16.

Petrol will be sold for GH¢12.97 per liter, diesel for GH¢13.43, and the mean price for petrol and diesel will be GH¢13.20 per liter, while LPG will cost GH¢12.30 per kilogram.

The Executive Secretary of COPEC, Duncan Amoah in a statement said: “the second pricing window of the month of August 2023 is set to commence by the next 48 hours. Indications are that pump prices of Petrol and Diesel are likely to increase averagely by about 5.7% over the current mean price of GH¢12.45/L across the country whilst LPG prices increase by about 11.9%.”

“The following basic information forms the basis of projections for the coming window, that; prices of finished products on the international market have shot up averagely around 11% for both petrol and diesel whiles Crude price has been increased by 6.79% from the mean price of $80.67/barrel to $86.15/barrel, even though the forex or Dollar exchange rate has relatively decreased from a previous average of GHS11.7185 to GHS11.4538 (-2.26%) per $1”.

Find COPEC’s full statement below:

FUEL PRICES SET TO GO UP BY ABOUT 5.7% FOR THE SECOND WINDOW OF AUGUST 2023.

The Second pricing window of the Month of August 2023 is set to commence by the next 48 hours.

Indications are that pump prices of Petrol and Diesel are likely to increase averagely by about 5.7% over the current mean price of GHS12.45/L across the country whilst LPG prices increase by about 11.9%.

The following basic information forms the basis of projections for the coming window, that; prices of finished products on the international market has shot up averagely around 11% for both petrol and diesel while Crude price has been increased by 6.79% from the mean price of $80.67/barrel to $86.15/barrel, even though the forex or Dollar exchange rate has relatively decreased from a previous average of GHS11.7185 to GHS11.4538 (-2.26%) per $1.

The following shall likely be the projected retail figures for Petroleum products starting from Wednesday the 16th of August 2023.

Petrol – GHS12.97/L
Diesel – GHS13.43/L
The Mean Price for Petrol and Diesel – GHS13.20/L

LPG – GHS12.30/kg

Thus, for a 14.5 kg LPG cylinder, is expected to be selling at GHS178.36 within the window.

All Pump Prices are expected to be within (±5%) error margin of COPEC’s prediction.

Find below the details of the projections for the window.

Petrol

With the international price increasing from $898.55/MT to $965.58/MT (7.46%), the retail price works up to GHS12.97/L.

Thus, Petrol is expected to increase by 4.37% of the current mean Pump retail price of GHS12.40/L, to close selling between GHS12.32/L and GHS13.62/L within ±5% of COPEC’s prediction.

Diesel

With the International benchmark prices increasing from $786.73/MT to $902.15/MT (14.67%), the expected mean retail pump price for the next window shall be GHS13.43/L.

Thus, Diesel is expected to increase by about 7.0% of the current Mean Pump retail price of GHS12.49/L to be selling between GHS12.76/L and GHS14.10/L within ±5% of COPEC’s projection.

Mean Price of Petrol and Diesel

The Mean price of Petrol and Diesel for the coming window per the numbers shall be 13.20/L with mean pump retail price range of GHS12.54/L and GHS13.86/L, within ±5% of COPEC’s prediction.

LPG

With the international benchmark price increasing from $423.75/MT to $547.79/MT (29.27%) the projected retail price of LPG is expected to be selling averagely at GHS12.30/kg.

Thus, within ±5% error, LPG is expected to be sold between GHS11.69/kg and GHS12.92/kg.

Remarks:
1. Government is still encouraged to do all it can to reduce taxes on LPG or to subsidize the price of LPG to promote or encourage its nationwide accessibility and usage which will eventually help save the environment.

2. In addition, currently, the total taxes and levies is 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.

Signed.

Duncan Amoah.
Executive Secretary.