Fuel prices expected to drop between 3% and 10% from March 16
The Institute for Energy Security (IES) has released a statement indicating that petrol and diesel prices are expected to fall by between 3% and 10% at the pumps, starting from Thursday, March 16. The IES has projected that petrol prices will decrease to GHC12.60 per litre, while diesel prices will decline to GHC13.40 per litre. In addition, liquefied petroleum gas (LPG) prices are expected to fall to GHC14 per kilogramme.
The IES has attributed the expected drop in fuel prices to a decline in international liquid fuel prices, as observed on the global S&P Platts platform, as well as the improved performance of the local currency against the US dollar. The IES expects the reduction in fuel prices to result from a decline in the activities of price indicators in the last two weeks.
The last two weeks have seen price indicators on both the domestic and international fronts falling, according to the IES. This development can translate into some price reductions at the pumps for various petroleum products. The IES expects domestic fuel market prices to fall between GHC12.60 for petrol, GHC13.40 for diesel, and GHC14 per kilogramme for LPG.
Despite these projections, the IES did not factor the gold for oil consignment into its latest projection due to a lack of information. The gold for oil deal involves the Ghanaian government providing gold to third parties in exchange for oil. The agreement is expected to improve Ghana’s balance of payments position and boost the country’s foreign exchange reserves. However, the IES has stated that it does not have sufficient information on the deal to incorporate it into its fuel price projections.
The expected drop in fuel prices is likely to have a significant impact on the Ghanaian economy. Lower fuel prices could lead to a reduction in transport costs, which would ultimately lower the cost of doing business in the country. This, in turn, could boost economic growth and improve the standard of living for Ghanaians.
The Institute for Energy Security’s projection of a 3% to 10% reduction in fuel prices starting from March 16 is good news for Ghanaians, as it is expected to reduce the cost of doing business and improve the standard of living in the country. The improved performance of the local currency against the US dollar and the decline in international liquid fuel prices are the key drivers of this development. However, the IES has not factored the gold for oil consignment into its projections, citing a lack of information on the deal.
