Petrol, diesel prices set to decrease by 3.73% and 4.04% in next window
The Chamber of Petroleum Consumers (COPEC) has announced that petrol and diesel prices at the pump are likely to experience a marginal decrease effective Wednesday, 1 March 2023. This projection, according to COPEC, is largely attributed to the drop in crude oil prices from US$82.99 per barrel to US$82.48 per barrel on the international market.
In recent years, global crude oil prices have been subject to considerable fluctuations, largely due to the volatility of the oil market, geopolitical tensions, and supply and demand dynamics. This has significant implications for the petroleum industry, as well as for consumers who rely on petroleum products for transportation, heating, and other essential uses.
In this context, the announcement by COPEC of a potential decrease in petrol and diesel prices is likely to be met with some relief by consumers in Ghana, particularly those who have been grappling with the impact of rising fuel prices on their budgets.
Per COPEC’s projection, petrol prices are expected to decrease by 3.73% from the current price of GHC14.20 per litre, while diesel prices are anticipated to fall by 4.04% from the current price of GHC14.57 per litre at the pump. While these reductions may appear modest, they will likely provide some much-needed relief to consumers who have been dealing with the strain of high fuel prices.
It is worth noting that the petroleum industry is subject to a complex web of factors that influence prices, including global supply and demand dynamics, the actions of major oil producers, and geopolitical tensions. In addition, the cost of production and transportation, as well as taxes and other regulatory factors, also play a significant role in determining fuel prices.
Despite the complexity of the factors that influence fuel prices, however, COPEC’s projection offers some insight into the current state of the petroleum market and its likely trajectory in the coming weeks.
The announcement by COPEC is also noteworthy in the context of the broader economic and political landscape in Ghana. The country has experienced a period of relative economic stability and growth in recent years, buoyed by a range of factors including a growing services sector, robust export markets, and significant foreign investment.
However, Ghana, like many other developing countries, faces a range of challenges related to economic development, including high levels of poverty, inadequate infrastructure, and limited access to basic services. Rising fuel prices can exacerbate these challenges, particularly for low-income households who are most vulnerable to the impacts of price increases.
Against this backdrop, the potential reduction in petrol and diesel prices announced by COPEC is likely to be seen as a positive development by many, particularly those who are most affected by high fuel prices.
COPEC’s announcement of a potential decrease in petrol and diesel prices is likely to be met with a mixture of relief and cautious optimism by consumers in Ghana. While the petroleum industry remains subject to a range of complex and often unpredictable factors that influence prices, COPEC’s projection provides some insight into the current state of the market and its likely trajectory in the coming weeks. In the broader context of Ghana’s economic and political landscape, this development is likely to be seen as a positive step towards greater economic stability and prosperity.
FUEL PRICES SET TO DECLINE-FIRST WINDOW MARCH
Following from the following basic assumptions, that; prices of both petrol and diesel have all declined marginally within the period whiles Crude price has also minimally dropped from $82.99/barrel to $82.48/barrel (-0.61%).
Though the Dollar exchange rate has seen a slight increase from averages of GHS12.4697 to GHS12.8650 (3.17%) per $1, further considering the CBOD rate of about $1=GHS14.00, the following shall form the predicted retail figures for Petroleum products from computations by the technical and pricing team, for the 1st pricing window of March under the price deregulation programme of the National Petroleum Authority, Which window commences on Wednesday, 1 March 2023. All understated Predictions are factored to be within (+/-)5%.
Petrol
With the international price decreasing from $878.41/MT to $849.25/MT (-3.32%), the retail price works up to GHS13.66/L
Petrol Retail prices are therefore expected to drop by 3.73% from the current Mean value of GHS14.20/L
Diesel
With the International price decreasing from $854.00/MT to $809.38/MT (-5.22%), and the increase in the Dollar rate, the expected mean retail price for the next window shall be GHS13.98/L
Thus, Diesel prices are therefore expected to drop by 4.04% from the current Mean value of GHS14.57/L
Mean Price of Petrol and Diesel
The Mean price of Petrol and Diesel shall be 13.82/L.
LPG
With the international price increasing from $699.45/MT to $702.50/MT (4.94%) the projected retail price of LPG is expected to increase by about 4.36% from the current average of 13.86/kg to GHS14.46/kg.
These expected drops in prices for the second time running since the second pricing window of February 2023 does not have any correlation with the much touted Gold for Oil programme as these movements are simply a derivative of market forces at play within the period, we still await the reductions the two cargoes brought in this month will add to the relieving the suffering of the petroleum consumer
Advice on LPG consumption.
The current high retail prices of LPG has contributed to consumption generally dropping by 12% year on year in 2022,
It will be prudent If authorities did take a second look at the factors contributing to high prices of a commodity which Ghana has in enormous commercial quantities to ensure price stability or decline if the government’s 50% penetration target is to be ever achieved and to continuously promote its usage with the overall environmental promotion in mind.
