Petroleum Product Prices Set for Slight Increase Starting February 1, 2025

From February 1, 2025, the prices of petroleum products, including petrol, diesel, and Liquefied Petroleum Gas (LPG), are expected to rise slightly. The Chamber for Petroleum Consumers (COPEC) has projected that the retail price of petrol will increase by 2.93%, reaching GH¢14.697 per litre.

Similarly, the price of diesel is anticipated to rise by 3.00%, bringing the average price to GH¢15.869 per litre. For LPG, the average retail price is projected to be GH¢17.224 per litre.

In response to these expected price hikes, COPEC, through a statement signed by its Executive Secretary, Duncan Amoah, called on the government to reduce taxes on LPG or consider subsidizing its price. The organization argues that lowering LPG prices would encourage its broader use and reduce dependence on firewood, which has harmful environmental consequences. COPEC believes that making LPG more accessible and affordable will have positive environmental impacts by promoting cleaner cooking options for households across the country.

The taxes and levies on petrol and diesel currently make up about 21.34% of the total retail prices. COPEC is urging the government to review these tax rates and consider reducing them to lessen the financial strain on consumers, especially with the ongoing challenges faced by many Ghanaians due to rising living costs. COPEC also suggested adopting a formula to adjust fuel levies in response to fluctuations in the exchange rate between the dollar and the cedi, which could help stabilize fuel prices and prevent further inflation.

Furthermore, COPEC advocates for the government to focus on revitalizing the Tema Oil Refinery (TOR) to reduce Ghana’s reliance on imported finished petroleum products. They argue that reviving TOR would not only reduce the cost of importing fuel but also help to avoid issues like fuel contamination, which can arise from importing refined products.

In conclusion, COPEC is calling on the government to address these concerns to mitigate the impact of rising fuel prices on consumers, while also ensuring a sustainable and environmentally friendly approach to energy use across the country.