Prices of petroleum products to see marginal increases from February 1

Prices of petroleum products at the pumps are set for a marginal adjustment in the next pricing window which begins on Saturday February 1, 2025.

The price of diesel and liquefied petroleum gas (LPG) will see an uptick while petrol prices expected to decrease slightly.

This is according to projections from the Chamber of Petroleum Consumers (COPEC) as it cites global crude price hikes and a depreciating cedi as key influencing factors.

COPEC’s analysis shows that, barring unforeseen fluctuations in international petroleum prices, petrol will drop by 2.93% from the current mean price of GHS15.141 per litre to GHS14.697 per litre.

Diesel, however, is expected to rise by 3.00%, increasing from GHS15.407 per litre to GHS15.869 per litre. LPG prices will also climb, with a 4.26% increase pushing the price to GHS17.224 per kilogram – meaning a 14.5kg LPG cylinder will sell at approximately GHS249.74.

The anticipated price changes follow a 5.68% surge in global crude oil prices, which have moved from $76.72 per barrel to $81.08 per barrel.

Additionally, the Ghanaian cedi has depreciated against the US dollar, moving from GHS14.85/$1 to GHS15.09/$1 (-1.58%), further impacting local pump prices.

Therefore, the breakdown of projected fuel prices are as follows – Petrol is expected to sell within GHS13.96 – GHS15.43 per litre.

Diesel is projected to range between GHS15.08 – GHS16.66 per litre with LPG estimated to trade between GHS16.36 – GHS18.08 per kilogram.

Despite the rise in international prices, COPEC argues that some Oil Marketing Companies (OMCs) overpriced petrol in the previous pricing window which makes a price correction necessary.

COPEC is urging the government to reconsider the tax burden on petroleum products, particularly LPG, which is crucial for reducing dependence on firewood and mitigating environmental degradation.

Currently, taxes and levies account for approximately 21.34% of petrol and diesel prices, a figure COPEC believes should be reviewed to ease consumer burdens.

The advocacy group is thus calling for the revitalisation of the Tema Oil Refinery (TOR) to reduce reliance on imported refined petroleum, which increases price volatility and the risk of fuel adulteration.