IES anticipates sustained stability in petroleum prices at pumps
The Institute for Energy Security (IES) has projected a period of sustained stability in the prices of petroleum products in the upcoming two weeks. Despite marginal decreases in the international prices of petrol and Liquefied Petroleum Gas (LPG) over the last fortnight, the IES notes that the depreciation of the Ghanaian cedi against the US dollar is likely to offset any potential reduction in fuel costs on the domestic market.
While gasoline experienced a 1.55% decline, and LPG saw a 0.66% reduction on the global market, the IES suggests that these decreases might not materialize locally due to the modest depreciation of the cedi against the greenback. The report also indicates that the price of Gasoil (diesel) is expected to remain unchanged, as the marginal increment of 0.04% on the world market and a 0.30% depreciation of the Ghanaian cedi are deemed insufficient to prompt a shift.
Global Fuel Market Overview
According to the IES analysis of Global Standard & Poor (S&P) Platts averages for the last two weeks of November 2023, petrol and LPG prices experienced a decline, while diesel witnessed a marginal increase.
As of November 26, 2023, petrol, diesel, and LPG traded at $788.75, $850.00, and $522.75 per metric tonne, respectively. The net price effects indicate a decrease of about 1.55% for petrol and 0.66% for LPG, while diesel recorded a marginal increase of 0.04%.
Local Fuel Market Performance
In the local market, the IES analysis reveals an average drop of ¢0.27 per litre in petrol prices and ¢0.32 per litre in diesel prices. As of November 26, 2023, the national average litre price stands at ¢12.21 for petrol and ¢13.10 for diesel. Liquefied Petroleum Gas is priced at ¢13 per kilogramme (kg) on average terms.
The IES report provides insights into the intricate interplay between international market dynamics and local economic factors, shaping the trajectory of fuel prices in Ghana.
