IES projects 11% cumulative price increase in petrol, diesel and LPG at pumps
Fuel prices in Ghana are poised for a significant increase in the first pricing window of July, according to the Institute for Energy Security (IES).
The anticipated rise is attributed to adverse price movements in the international petroleum market and the continued depreciation of the Ghana Cedi by some 1.85%.
The IES projects a 2% increase in gasoline prices, a 4% hike in gasoil, and a 5% surge in liquefied petroleum gas (LPG) – cumulatively amounting to an 11% increase in prices of the three petroleum products.
“Considering the developments in the foreign fuel market and the domestic forex market, the Institute for Energy Security (IES) anticipates an increase in fuel prices in the first half of July 2024, on account of the worsening performance of the Ghana Cedi. Specifically, Gasoline is expected to increase by 2%, Gasoil by 4%, and LPG by 5%,” the IES posited.
Per the IES, the second pricing window of June 2024 already saw substantial price increments, with gasoline climbing 1.45%, gasoil rising 6.84%, and LPG surging 9.03% over the last two weeks.
These developments underscore mounting pressures on fuel costs, with the IES warning of further escalations driven by the faltering Cedi.
The IES Economic Desk’s tracking of the Ghana Cedi performance on the foreign exchange (forex) market for the first pricing-window for June 2024 shows the local currency lost 1.85% in value against the U.S. Dollar.
The Ghana Cedi traded at GHS 15.28 after previously trading at GHS 14.99 at the start of the second pricing-window for June 2024.
Local Fuel Market Performance
The Institute for Energy Security (IES) daily monitoring of activities on the domestic fuel market for second pricing-window for June 2024 observed relative stability in price for liquid fuels from Oil Marketing Companies (OMCs).
Star Oil is the only OMC that reduced price per litre of Gasoline while maintaining that of Gasoil in the period under the review.
The remaining Oil Marketing Companies (OMCs) monitored maintained price per litre for liquid fuels throughout the second pricing-window for June 2024. Liquefied Petroleum Gas (LPG) maintained its price per kilogram (kg at GH₡15.96 in the closed window.
The Institute for Energy Security’s (IES’) computation of national average price for the three (3) refined petroleum products for the first pricing-window for June 2024 show Gasoline and Gasoil selling at GH₡14.06 and GH₡14.26 per litre respectively, whereas (LPG) went for GH₡15.96 per kilogram (kg).
The IES Marketscan finds Star Oil, Zen Petroleum, and Benab Oil as OMCs selling at least priced over the last two weeks.
