Fuel Prices Expected to Drop Sharply from July 1 – COPEC
COPEC cites falling crude prices and cedi appreciation as key drivers of expected relief at the pumps.
- Fuel prices expected to drop from July 1
- COPEC cites falling crude oil and stronger cedi.
- Diesel, petrol and LPG all projected to record reductions
Consumers are expected to benefit from lower fuel prices from Wednesday, July 1, as the Chamber of Petroleum Consumers (COPEC) projects a significant reduction in petroleum product prices driven by falling global crude oil prices and a stronger cedi.
COPEC attributes the anticipated drop to a 19.69% decline in global crude oil prices, which fell from $97.32 per barrel to $78.16 per barrel, as well as a 3.14% appreciation of the Ghana cedi against the US dollar during the current pricing window.
For petrol, COPEC noted that the international Free-on-Board (FOB) price decreased by 6.92%, translating into a projected average retail pump price of GH¢13.36 per litre, down from the current mean price of GH¢14.24 per litre.
The energy think tank expects petrol to sell within a range of GH¢12.69 to GH¢14.03 per litre, depending on pricing decisions by individual Oil Marketing Companies (OMCs) in the first pricing window of July.
Diesel is projected to record an even sharper decline, following a 15.18% drop in its international FOB price. COPEC estimates an average retail price of GH¢14.10 per litre, compared to the current mean price of GH¢16.26 per litre, with expected retail prices ranging between GH¢13.39 and GH¢14.80 per litre.
Liquefied Petroleum Gas (LPG) is also expected to become cheaper, with a 15.96% reduction in international FOB prices. COPEC projects LPG could sell between GH¢9.54 and GH¢10.55 per kilogram during the next pricing window.
COPEC is urging Oil Marketing Companies to pass on the gains from favourable global market conditions to consumers promptly, saying the reductions should offer relief to households and businesses.
The chamber also commended government for allocating part of its share of crude oil from the Jubilee Field to local refineries, a move it says could reduce imports of refined petroleum products, ease pressure on the cedi and improve long-term price stability in the downstream petroleum sector.
Meanwhile, the National Petroleum Authority (NPA) has also revised downward its price floors for the first pricing window of July, setting petrol at GH¢12.79 per litre, diesel at GH¢13.54 per litre, and LPG at GH¢10.11 per kilogram.
The price floors represent the minimum prices at which Oil Marketing Companies and LPG Marketing Companies are permitted to sell petroleum products during the pricing window.
