COPEC pushes for tax review on LPG - Despite drop in fuel prices

The Chamber of Petroleum Consumers (COPEC) has stressed the need for the government to review taxes on the price buildup of petroleum products to ensure more accessibility and wider use.

It said it was particularly important for the government to take drastic measures to reduce the taxes on LPG to encourage wider usage and reduce the dependence on firewood.

“At a time that the National Petroleum Authority is seriously promoting the use of LPG as the preferred choice for domestic use, it is important to make it not just accessible, but affordable through pricing,” the Executive Secretary of COPEC, Duncan Amoah, said in an interview with the Daily Graphic.

He was reacting to the drop in prices of petroleum products at the pumps yesterday, as earlier predicted by COPEC.

The chamber had predicted that there was going to be a four per cent drop in petrol, diesel, and LPG prices at the pump.

“Barring any unforeseen major changes in global Petroleum FOB prices, indications across the downstream petroleum market are that the pump retail prices of Petrol, Diesel and LPG are to go down to the benefit of consumers come the next window beginning September 16, 2024,” Mr Amoah said in a statement.

Prices drop

Yesterday, the market responded and the prices at the pump fell, with marker leader and state-owned, GOIL advertising a GH₵14. 49 per litre price. It has sold petrol for GH₵14.70 since September 2.

Diesel, which sold at GH₵14.70 a litre is now GH₵14.49 per litre.

Star Oil Ghana is selling a litre of petrol at GH₵12.55, indicating a one cedi drop. This represents a 7.9 per cent decline. The company is also selling a litre of diesel at GH₵13.27. This represents a 4.18 per cent drop, indicating a 58 pesewas reduction from the previous price.

World prices

The price drop is being associated with the decline in the price of crude oil on the international market over the past two weeks.

Crude oil prices dropped from about US$81 earlier this month to hit US$71 a barrel on September 16, 2024.

“Petroleum products prices are dipping on the international market with crude price being the lowest in the course of the year,” COPEC said.