Ghanaian consumers are set to experience mixed changes in petroleum product prices starting February 1, 2025, according to the latest projections from the Chamber of Petroleum Consumers (COPEC).
While petrol prices are expected to drop slightly, diesel and liquefied petroleum gas (LPG) prices will see an upward adjustment. These changes are driven by rising global crude oil prices and the depreciation of the Ghanaian cedi against the US dollar.
Factors Behind the Adjustments
- Global Crude Oil Prices: Crude oil prices have risen by 5.68%, climbing from 76.72to81.08 per barrel.
- Cedi Depreciation: The Ghanaian cedi has weakened against the US dollar, moving from GHS14.85/1toGHS15.09/1, a depreciation of 1.58%.
These factors have combined to influence the pricing of petroleum products in Ghana, with varying impacts on petrol, diesel, and LPG.
Projected Price Changes
- Petrol: Prices are expected to decrease by 2.93%, from GHS15.141 per litre to GHS14.697 per litre.
- Diesel: Prices are projected to rise by 3.00%, increasing from GHS15.407 per litre to GHS15.869 per litre.
- LPG: Prices are estimated to increase by 4.26%, reaching GHS17.224 per kilogram. This means a 14.5kg cylinder will cost approximately GHS249.74.
At the pump, petrol prices are expected to range between GHS13.96 and GHS15.43 per litre, diesel between GHS15.08 and GHS16.66 per litre, and LPG between GHS16.36 and GHS18.08 per kilogram.
COPEC’s Call for Price Corrections and Tax Reforms
COPEC has pointed out that some Oil Marketing Companies (OMCs) overpriced petrol in the previous pricing window, necessitating a correction. The advocacy group is also urging the government to review taxes on petroleum products, particularly LPG, to promote its use over firewood and charcoal. This, they argue, would help reduce environmental degradation and deforestation.
Currently, taxes and levies account for about 21.34% of the retail prices of petrol and diesel. COPEC believes that reducing these taxes could alleviate the financial burden on consumers and make energy more affordable for households and businesses.
Reviving Tema Oil Refinery (TOR)
COPEC has reiterated its call for the revival of the Tema Oil Refinery (TOR) to reduce Ghana’s reliance on imported refined petroleum products. The group argues that depending on imports exposes the country to price volatility and the risk of fuel adulteration. Reviving TOR, they say, would not only stabilize prices but also create jobs and boost the local economy.
What This Means for Consumers
While the marginal decrease in petrol prices may offer some relief to motorists, the increases in diesel and LPG prices could pose challenges for businesses and households that rely on these products. Diesel is widely used in transportation, agriculture, and industry, while LPG is a critical energy source for cooking in many homes.
COPEC’s recommendations for tax reforms and the revival of TOR highlight the need for long-term solutions to stabilize fuel prices and ensure energy security in Ghana. As global market dynamics continue to influence local prices, stakeholders are calling for proactive measures to mitigate the impact on consumers and the economy.
The upcoming price adjustments underscore the interconnectedness of global and local factors in shaping Ghana’s energy landscape. As the government and industry players navigate these challenges, the focus remains on finding sustainable solutions that balance economic growth, environmental protection, and the welfare of citizens.
For now, Ghanaians are advised to brace for the marginal changes in fuel prices and explore energy-efficient practices to manage their consumption and costs effectively.
