COPEC urges transport unions to be considerate in adjusting fare prices amid fuel increment

Story By: Rebecca Okine

Head of Research at the Chamber of Petroleum Consumers (COPEC), Mr. Paul Eric Ofori has appealed to transport unions to be considerate in their fare adjustments in response to the recent surge in fuel prices.

“We normally want them to be between 5 to 10% as they adjust the fares,” Mr. Ofori said. “Anything beyond that is a hardship that the ordinary consumer will have to bear in the long run.”

Fuel prices have risen for the third consecutive time this year with petrol rising by 1.9% bringing the cost per litre to approximately GH¢15.72. Diesel has risen by 2.1%, bringing its price to GH¢16.60 per litre. Liquified Petroleum Gas (LPG) is expected to see its highest surge, with an anticipated 4.6% taking the price per kilogram to GH¢18.20.

Mr. Ofori attributed the recent surge in fuel prices primarily to increases in crude oil, petrol, and Liquefied Petroleum Gas (LPG) on the international market and the constant depreciation of the cedi. He noted that while price increments were anticipated, the actual increase exceeded their projections.

“It was expected for prices to go up, however, it is not the kind of margin we were hoping to see,” said Mr. Ofori. “Some have gone beyond our projections and it is due to some internal factors as well.”

OMC Responses

Oil Marketing Companies (OMCs) have started adjusting their prices upward this week. Shell has increased the price of petrol from GH₵ 15.59 per litre to GH₵16.23, while diesel now sells at GH₵ 16.20 per litre, from GH₵ 15.79. Star Oil, however, has maintained petrol at GH₵ 14.99 per litre but raised diesel from GH₵ 14.99 to GH₵ 15.37 per litre.

Government interventions to stabilise prices

Mr. Ofori explained that while the government has no control over fluctuations in the international market that are leading to these increments, it can implement internal measures that will help. These include stabilising the cedi, and reviewing taxes and levies on fuel prices.

“One of the things we can control as a country is how best to stabilise the cedi and review the taxes and levies on the price build-up.”

He also noted the need to revive Tema Oil Regfinery (TOR) to help regulate fuel prices locally. “Government should also consider how to bring TOR back on its feet to help stabilise the prices at the pumps.”