Petrol And Diesel Prices To Reduce: COPEC Predicts Fuel Price Fall Despite Cedi Depreciation Against Dollar

• Fuel prices are projected to reduce from Wednesday, March 1, 2023, according to petroleum industry watcher COPEC-GH
• COPEC-GH has explained in a statement that the reduction of about 4% is due mainly to the fall in crude oil prices on the international market
• Per the forecast, only Liquefied Petroleum Gas (LPG) will see an increase of 4.36% increase from Wednesday

The Chamber of Petroleum Consumers Ghana (COPEC-GH), a think tank in the petroleum industry, has forecasted a slight drop in the prices of petrol and diesel prices from Wednesday, March 1, 2023.

The Ghanaian oil markets monitor said in a release that the predicted reduction is due largely to a drop in crude oil prices on the international market. COPEC-GH said a barrel of crude has dropped from $82.99 to $82.48/barrel on the international market.

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The think tank predicts that petrol will drop by 3.73% from the current GH¢14.20 per litre in the next window, while diesel on the other hand will drop by 4.04% from the current GH¢14.57 per litre.

It said this will happen from Wednesday, March 1, 2023, "though the Dollar exchange rate has seen a slight increase from averages of GH¢12.4697 to GH¢12.8650 (3.17%) per $1, further considering the CBOD rate of about $1=GH¢14.00..."

Only Liquefied Petroleum Gas (LPG) will see an increase of 4.36% increase from Wednesday, according to COPEC-GH.

Fuel prices reduce two consecutive times in 2023

If COPEC-GH's prediction comes true, it means fuel prices would have been reduced for the second consecutive time in 2023.

During the second pricing window of February, which fell on the 16th day of the month, fuel prices decreased by between 7% and 11%. Only LPG went up for the second week in a row.

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However, prices went up by between 7% to 13% from February 1, 2023, the first pricing window for the month of February.

Speaking to YEN.com.gh in an exclusive interview, COPEC-GH Executive Director Duncan Amoah said despite the second conservative fuel price fall, it does not necessarily mean fuel prices will continue to fall in the coming months.

"Fuel pricing under the price deregulation policy is determined by a number of factors. So this week, a fall in crude price may have resulted in a fall in pump prices despite the cedi depreciation, but in two weeks that can change totally.

"It may even be possible that a barrel of crude would fall further on the international market, however, the cedi depreciation could be so significant that the price of petrol, diesel and LPG would also go up," Amoah explained.

Ghana ranks 1st in Africa with the highest food inflation of 122%

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Meanwhile, YEN.com.gh reported in a previous story that the World Bank has ranked Ghana as the number one country with the highest food price increases.

Food prices have shot up by some 122%, earning the country the unenviable feat in sub-Saharan Africa.

Since the beginning of the year, food prices have increased sharply in several countries worldwide, mainly attributable to the Russian/Ukraine war.

Fuel price increases are strongly linked to food inflation in Ghana.

Source: YEN.com.gh