The Institute for Energy Security (IES) is predicting a marginal reduction in fuel prices in the second pricing window, which begins on May 16, 2024.
In the first pricing window of May, petrol prices went up by 10% at the pumps.
Oil Marketing Companies (OMCs) adjusted the prices of some petroleum products at the pumps to reflect the changes.
However, IES says the fall in prices in the second pricing window is due to the reduction of prices of refined petroleum products on the international market, which is wider than the cedi depreciation.
“Following the changes recorded on the international market for refined petroleum product, Gasoline [petrol], Gasoil [diesel] and Liquified Petroleum Gas (LPG) recorded a fall of about 5.68%, 4.51% and 4.72% respectively”.
“In the second pricing window for May 2024, ex-pump is expected to fall given the reductions recorded for refined petroleum products on the international market, which is wider than Ghana cedi depreciation”, it mentioned.
On the world fuel market, the Global Standard & Poor (S&P) Platts tracking of petroleum products performance on the world fuels market indicated a significant fall in the price of petrol, diesel and LPG.
Specifically, the price of petrol has fallen by 5.68%, the price of diesel is down by 4.51%, and the price of Liquefied Petroleum Gas tumbled by 4.72%.
The comparative analysis of data revealed all prices of petroleum products have fallen significantly on the world fuel market.
The IES computation of petroleum products for May 2024 showed petrol and diesel selling at GH₵14.22 and GH₵14.00 per litre, respectively, whereas LPG went for GH₵15.05 per kilogramme.
Despite the Central Bank selling an estimated $23 million on the spot market last week, the local currency suffered sharp depreciation against the major trading currencies.
On the retail foreign exchange market, the cedi shaved 2.89% week-on-week against the dollar (-17.32% year-to-date) and closed weaker against the Euro (-3.52% week-on-week; -15.20% year-to-date) and pound (-3.03% week-on-week; -16.63% year-to-date).
The cedi is presently selling at GH¢14.90 at the forex bureau.
The Bank of Ghana is, however, quoting one US dollar to GH¢13.01.