COPEC calls for GH¢1 petrol, continuation of GH¢2 diesel subsidy amid price surge

The Chamber of Petroleum Consumers (COPEC) is calling on the government to extend its fuel subsidy intervention into the second pricing window of September to cushion consumers against expected increases at the pumps. In a statement signed by its Executive Secretary, Duncan Amoah, COPEC is proposing a GH¢1 per litre relief for petrol consumers while urging the government to maintain the GH¢2 per litre subsidy on diesel until global petroleum price benchmarks return to normal levels. COPEC’s appeal comes as it projects that petrol will increase to an average of GH¢16.26 per litre, while diesel is expected to rise to GH¢19.07 per litre from Wednesday, September 16.

The Chamber attributed the projected increases to significant rises in international crude oil and refined petroleum product prices. COPEC said the global crude oil price had increased from $89.30 to $103.07 per barrel, while the Free-On-Board price of petrol rose by 10.08% and diesel by 12.33%. The Chamber also appealed to Oil Marketing Companies (OMCs) to “shelve some of their margins” to avoid placing additional pressure on consumers amid the expected price increases.

It further urged the government to expedite expansion works at the Tema Oil Refinery (TOR) to increase its refining capacity from the current 45,000 barrels per day to 100,000 barrels per day, which it believes would reduce Ghana’s reliance on imported finished petroleum products. Petrol prices are expected to rise to an average of GH¢16.26 per litre, while diesel could sell at GH¢19.07 per litre from Wednesday, September 16, according to the Chamber of Petroleum Consumers (COPEC). COPEC projects a 4.24% increase in petrol prices from the current average of GH¢15.60 per litre.

Diesel is expected to record a steeper 10.23% increase, rising from an average of GH¢17.30 to GH¢19.07 per litre. The Chamber attributed the projected increase largely to a sharp rise in international crude oil and refined petroleum product prices. According to COPEC, the global crude oil price increased from $89.30 to $103.07 per barrel during the pricing window.

It also said the international Free-On-Board (FOB) price of petrol rose by 10.08%, from $1,136.50 to $1,251.07 per metric tonne, while diesel increased by 12.33%, from $1,250.50 to $1,404.73 per metric tonne. The cedi, however, recorded a marginal appreciation of 0.29% against the US dollar, moving from an average interbank rate of GH¢11.5166 to GH¢11.4830 to the dollar. COPEC further projects that Liquefied Petroleum Gas (LPG) will sell at GH¢15.32 per kilogramme, following a 16.45% increase in its international FOB price.

The Chamber has appealed to the government to extend its subsidy intervention, proposing a GH¢1 per litre relief for petrol consumers while maintaining the GH¢2 per litre subsidy on diesel. COPEC also urged Oil Marketing Companies (OMCs) to consider reducing their margins to cushion consumers against the expected increases.