Retail prices of petrol, diesel and liquefied petroleum gas (LPG) are expected to decline from Wednesday, July 1, as lower global crude oil prices and a stronger cedi reduce the cost of imported fuel, the Chamber of Petroleum Consumers (COPEC) said.
In a statement, COPEC attributed the projected price reductions to a 19.69% fall in global crude oil prices, from $97.32 per barrel to $78.16 per barrel, and a 3.14% appreciation of the cedi against the U.S. dollar during the current pricing window.
The chamber said the international Free-on-Board (FOB) price of petrol fell by 6.92%, resulting in a projected average retail pump price of GH¢13.36 per litre, down 6.21% from the current average price of GH¢14.24 per litre.
COPEC said petrol is expected to sell between GH¢12.69 and GH¢14.03 per litre during the first pricing window of July, depending on the pricing strategies of individual oil marketing companies.
Diesel prices are projected to record a steeper decline after the international FOB price dropped 15.18%. COPEC estimates an average retail price of GH¢14.10 per litre, representing a 13.28% reduction from the current average of GH¢16.26 per litre.
It expects diesel to retail between GH¢13.39 and GH¢14.80 per litre.
LPG prices are also expected to fall following a 15.96% decline in international FOB prices, with COPEC projecting retail prices of between GH¢9.54 and GH¢10.55 per kilogram.
The chamber urged oil marketing companies to pass on the benefits of the favourable market conditions to consumers, saying lower fuel prices would provide relief to households and businesses.
COPEC also welcomed the government’s decision to allocate part of its share of crude oil from the Jubilee Field to local refineries, saying the policy could reduce imports of refined petroleum products, ease pressure on the cedi and improve long-term price stability in the downstream petroleum sector.
The projection comes after the National Petroleum Authority (NPA) revised downward the price floors for the first pricing window of July, setting minimum prices of GH¢12.79 per litre for petrol, GH¢13.54 per litre for diesel and GH¢10.11 per kilogram for LPG.
The price floors represent the minimum prices at which oil marketing companies and LPG marketing companies are permitted to sell petroleum products during the pricing window.
