The Chamber of Petroleum Consumers (COPEC) has projected a fuel price reduction of 4% to 5%, starting Monday, September 16, 2024, providing relief to consumers nationwide.
COPEC attributes this anticipated price drop to the significant decrease in global petroleum prices, which have hit their lowest levels this year. Free on Board (FOB) prices for petrol fell by 10.62%, diesel by 6.09%, and Liquefied Petroleum Gas (LPG) by 2.40%.
While the retail prices of petrol, diesel, and LPG are expected to reflect these global trends, COPEC warns that the continued depreciation of the Ghanaian Cedi — from GH¢15.7380 to GH¢15.7519 per USD — could slightly offset the reduction.
COPEC has also urged the government to consider reducing taxes on LPG or providing subsidies to encourage its broader use. They argue this could decrease reliance on environmentally damaging firewood. The chamber has further highlighted that taxes on petrol and diesel account for 23.47% of their retail prices, calling for either a reduction or a variable levy formula to adjust taxes based on exchange rate fluctuations.
In addition, COPEC has renewed calls for the revival of the Tema Oil Refinery (TOR) to reduce the country’s reliance on imported fuel, thereby minimizing risks like fuel contamination.
