The Chamber of Petroleum Consumers (COPEC) has announced an impending 4% rise in petroleum product prices, effective from Tuesday, July 16, 2024.
According to COPEC, the depreciation of the cedi against the dollar is a significant factor contributing to the hike.
The exchange rate has shifted from $1:GHS15.2779 to $1:GHS15.462, a depreciation of 1.205%. COPEC’s Executive Secretary, Duncan Amoah, highlighted the expected price changes: Petrol will increase to GHS14.795 per liter, Diesel to GHS15.332 per liter, and LPG to GHS16.205 per kilogram. A 14.5 kg LPG cylinder will cost around GHS234.97.
This forecast is based on the current trends in global petroleum prices and the ongoing economic challenges.
In response to the projected price increases, COPEC has urged the government to consider reducing taxes or subsidizing LPG to make it more accessible and environmentally friendly.
The organization pointed out that the total taxes and levies on retail prices of petrol and diesel are approximately 22.56%. Duncan Amoah emphasized the need for government intervention, suggesting a review of the tax structure or the adoption of a flexible levy formula to mitigate the impact of currency fluctuations.
COPEC appealed for the reactivation of the Tema Oil Refinery to reduce dependence on imported petroleum products, which are prone to contamination.
