Fuel prices set for sharp drop from July 1 as petrol, diesel and LPG get cheaper

Fuel prices are expected to fall significantly from Wednesday, July 1, as global crude oil prices decline and the cedi records a marginal gain against the US dollar.

The Chamber of Petroleum Consumers (COPEC) says the combined effect of falling crude prices and currency movements will translate into lower pump prices for petrol, diesel, and LPG in the first pricing window of July.

According to a statement signed by Duncan Amoah, Executive Secretary of COPEC, it said global crude oil prices have dropped by about 19.69%, from $97.32 per barrel to $78.16 per barrel.

The cedi also appreciated slightly, moving from an average interbank rate of $1:GHS11.8035 at the start of the current window to $1:GHS11.4333, representing a -3.14% movement.

For petrol, COPEC notes that the FOB price has decreased from $988.77/MT to $920.34/MT, a fall of 6.92%, compounded by currency appreciation.

This translates into a projected retail price of about GH¢13.36 per litre, representing a 6.21% drop from the current mean price of GH¢14.24 per litre.

Petrol is therefore expected to sell between GH¢12.69 and GH¢14.03 per litre within a ±5% margin.

Diesel prices are also projected to ease significantly. The FOB price dropped from $1056.38/MT to $896.02/MT, representing a 15.18% decline.

With the cedi’s movement factored in, COPEC estimates a retail price of GH¢14.10 per litre, down from the current mean of GH¢16.26 per litre, representing a 13.28% reduction. Diesel is expected to sell between GH¢13.39 and GH¢14.80 per litre.

For LPG, the FOB price declined from $652.65/MT to $548.50/MT, a 15.96% drop, alongside the cedi appreciation. COPEC projects a new average price of GH¢10.05 per kilogram. Within a ±5% range, LPG is expected to sell between GH¢9.54 and GH¢10.55 per kilogram.

In conclusion, COPEC expressed expectation that oil marketing companies will respond promptly to the projected reductions to ease the burden on consumers.

It also commended government for ceding part of its share of crude from the Jubilee fields to support local refineries, noting that this could help reduce import volumes and ease pressure on the local currency.

Source: myjoyonline.com