Fuel prices expected to stabilise in the first pricing window of May – IES
The Institute for Energy Security (IES) is predicting fuel price increases to slow down in the coming days.
IES projection follows a reduction in the price of diesel and Liquified Petroleum Gas (LPG) on the international market, while there was a marginal increase in the price of petrol on the international market.
The cedi also depreciated by about 1.06% to the dollar in the past two weeks.
However, the IES believes, there might be no change in the price of petroleum products at the pumps or marginal drop in fuel prices.
“Considering the recent price movements recorded on the international market by the refined petroleum products. Gasoil [diesel] and Liquified Petroleum Gas (LPG) recorded a fall of about 5.87% and 6.56% respectively, Gasoline [petrol] has seen its price increase marginally by about 0.49%. The Ghana cedi’s performance continues to fall against the U.S. Dollar, with its recent fall estimated at 1.06%.”
“In the coming days of May 2024, consumers are likely to see prices slowing down for all petroleum products after several weeks of hikes. This is coming largely as a result of slowed price increments recorded by refined products on the international market.”
On the world fuel market, the Global Standard & Poor (S&P) Platts monitoring of refined petroleum products posted the following closing price for the second pricing window of April 2024: petrol, $942.30; diesel, $792.02, and LPG $483.45, per metric tonne respectively.
The price change reflected a net effect of a 0.49% increase in the per metric tonne price of petrol and a 5.87% decrease in the price per metric tonne for diesel. Also, LPG prices fell by 6.56% per metric tonne.
The IES computation of the national average price for the three refined petroleum products over the past two weeks indicated that petrol sold at an average of GH¢13.81 per litre, diesel, GH¢14.25 per litre respectively and LPG went for GH¢13.65 per kilogramme on the local fuel market.
In the 1st pricing window of April 2024, fuel prices went up twice in a pricing window.
Some of the Oil Marketing Companies have attributed the increase to the recent depreciation of the cedi to the dollar.
In addition, some stakeholders have blamed the increase on the government’s decision to reinstate the Price Stabilization and Recovery Levy on prices of petroleum products.
The reintroduction of the levy imposed 16 pesewas on petrol and 14 pesewas on diesel.
It is also not clear for now whether the decision of the National Petroleum Authority to set a price floor for fuel has also impacted on the prices at the pumps.