COPEC hints of possible increase in fuel price by 30p
The Chamber of Petroleum Consumers Ghana (COPEC) has hinted that fuel prices could go up by 30 pesewas soon.
According to the Executive Secretary of COPEC, Duncan Amoah, “From 16th February 2022, at FOB price of $880.79, our projected ex-pump price is GH₵7.764, so it’s expected that the max ex-pump price shall be hovering around GH₵7.750”
Presently, prices on the market are at an average of GH₵6.4 per litre.
In 2022 alone, the price of fuel has increased by about GH₵1, and public transport operators are holding conversations to increase transport fares.
The restoration of the Price Stabilisation and Recovery Levy (PSRL) by the National Petroleum Authority did not help issues either.
The move, the NPA justified was to enable the sector have enough revenue to subsidize the supply of petrol, diesel, and LPG.
The temporary removal gave consumers a relief of 6 pesewas per litre on petrol, fourteen pesewas per litre (GHp14/Lt) on diesel, and fourteen pesewas per kilogram (GHp14/Kg) on LPG.
Therefore, while consumers are still trying to get used to the price increase, they would have to expect another increment which has an impact of about double what they experienced due to the reintroduction of the PSRL.
Meanwhile, Chief Executive of the Association of Oil Marketing Companies, Kwaku Agyemang Duah, has revealed that consumers will have to pay more than ¢8 per litre for fuel come March.
According to him, should the price of petroleum products continue to soar on the international market among other things, Ghanaians would be experiencing new price hikes in March.
Read: Government optimistic about the economy stabilizing by end-2022
Speaking in an interview, he explained that taking into consideration the unyielding rise of the dollar against the cedi, as well as the sporadic increments in petroleum product prices on the international market, fossil fuel prices in Ghana would likely hit ¢8 per litre.
“The short-term one is up to March, we sure will be crossing the 8 cedis per litre by then,” he said.
He further revealed that some OMCs have had to shut down due to their inability to meet the high cost of doing business as a result of the frequent price hikes.
“You know we have got the taxes there, and the other levies and you have got your margin now if the taxes are too high you may have to forgo your margin. Now when you forgo your margin what do you use to pay your workers?” he said.
Additionally, the Chamber of Petroleum Consumers Ghana (COPEC) urged government to explore different strategic measures to lessen the impact of the rise in petroleum prices on consumers.
Speaking on Accra-based Citi FM, the Executive Secretary of COPEC, Duncan Amoah, criticized the way government is dealing with the consistent increment in fuel prices.
He noted that, the price per litre of fuel is likely to hit GH¢8.00 by March this year, thus government must sit up.
“In real terms, fuel price increases these days happen to be one of the very things pushing the economy to the brink. The year began with fuel price at GH¢6.6.
“Unfortunately, we now have some OMCs selling at GH¢7.50. It’s our estimation that probably by the end of March, if international price trends continue to move as it is doing currently, we would be crossing the GH¢8.00 mark,” Duncan Amoah stated.
Following the re-introduction of the Price Stabilisation and Energy Recovery Levy (PSRL) by the National Petroleum Authority (NPA), fuel prices across various pumps in the country have seen marginal increments. The situation, according to drivers and owners of private vehicles, will deepen the hardship they’re already experiencing.
Reacting to the recent increment on Tuesday, Mr Amoah noted the reintroduction of the Price Stabilisation and Recovery Levies (PSRL) by the National Petroleum Authority (NPA) is an insensitive decision.
According to him, the NPA’s decision will affect consumers and pose economic difficulties for them.
“What it means in simple terms is that your fuel prices will go up by that margin. 16 pesewas for petrol, 14 pesewas for diesel, 14 pesewas for LPG. We think this is very insensitive and badly timed. Insensitive to the extent that, you have for the first time in 28 years, where crude prices have crossed 90 dollars. Mostly in January, crude prices decelerate or decline.
“You see prices drop around this time, because of [trading] between Russia and Ukraine, and also undersupply by the OPEC block, there’s a lot of pressure on crude. Prices are going up already. We complain a lot. The driver unions complain a lot. Following which the President of the Republic gave a directive that the Stabilisation and Recovery Levy, one of the levies that we had all requested to be reduced, should be zeroed. The thinking would have been that we would wait for prices to ease a bit,” he stated.
