Fuel Prices Expected To Reduce | Economy

In a welcome relief to Ghanaian motorists, fuel prices are expected to decrease starting tomorrow, November 16, 2024.

According to the Chamber of Petroleum Consumers (COPEC), petrol prices will drop by 5.06%, while diesel prices will decrease by 3.88%. Liquified Petroleum Gas (LPG) prices will also dip by 1.14%.

This development comes on the heels of a decline in global crude oil prices, which fell by 0.72% from $74.63 per barrel to $74.09 per barrel.

Despite the cedi’s continued depreciation against the dollar, the reduction in crude oil prices is expected to drive down fuel costs.

New Prices

As of tomorrow, petrol will sell at GH¢13.582 per litre, while diesel will go for GH¢14.578 per litre.

A 14.5 kilogramme LPG cylinder is expected to be sold at GH¢263.35.

COPEC’s Call for Tax Reduction

COPEC is seizing the opportunity to reiterate its call for the government to reduce taxes on LPG or provide subsidies to promote nationwide accessibility and usage.

The organization argues that this would help mitigate environmental degradation caused by firewood use.

Currently, total taxes and levies on retail petrol and diesel prices stand at 22.12%.

COPEC is advocating for a reduction in tax rates or the removal of some taxes to alleviate the burden on consumers.

Alternatively, the organization suggests implementing a formula to vary total levies in response to changes in the dollar/cedi exchange rate.

Fuel Price Volatility

Ghana has experienced significant fuel price fluctuations in recent years. In 2020, petrol prices soared by 27%, while diesel prices increased by 29%.

The government’s introduction of the Price Stabilization and Recovery Levies (PSRL) aimed to cushion consumers from price shocks.

However, COPEC and other consumer advocacy groups have consistently pushed for reductions in taxes and levies to minimize the impact of global market fluctuations on local fuel prices.