Fuel prices are poised for another significant increase in the second half of July 2024, driven by deteriorating international market conditions and a weakening local currency.
The Institute for Energy Security (IES) forecasts a 2% rise in gasoline prices, a 1% uptick in gasoil, and a sharp 7% increase in liquefied petroleum gas (LPG).
This projection follows an already challenging first half of the month, during which gasoline prices surged by 3.18%, gasoil by 1.76%, and LPG by a staggering 12.15%.
The primary catalysts behind these hikes include escalating global petroleum product prices and a 1.19% depreciation of the Ghanaian Cedi against major currencies.
“Considering continued hike in prices recorded on the international market for petroleum products adding to the fall (-1.19%) of the Ghana Cedi, fuel prices at the local pumps are likely to maintain its rise from the first pricing window.
“Following the above changes on the foreign fuel market and the domestic forex market and with no policy intervention from the regulator, the Institute for Energy Security (IES) projects continued increase in fuel prices in the second half of July 2024, on attributed of the worsening international market dynamics. Specifically, Gasoline is expected to increase by 2%, Gasoil by 1%, and LPG by 7%,” said the IES.
The sustained increase in fuel prices is expected to exert additional inflationary pressures on the Ghanaian economy, complicating the central bank’s monetary policy efforts.
With international petroleum markets showing no signs of stabilizing and the local currency under continuous strain, consumers and businesses alike must brace for further financial strain.
Local Fuel Market Performance
The Institute for Energy Security (IES) daily monitoring of activities on the domestic fuel market for second pricing-window for July 2024 observed increased price per litre for all petroleum products from Oil Marketing Companies (OMCs) sampled.
Price per litre of liquid petroleum products increased by a margin average of about GH₡0.10 for Gasoil and GH₡0.06 for Gasoline respectively.
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 July 2024 show Gasoline and Gasoil selling at GH₡14.39 and GH₡14.61per litre respectively, whereas (LPG) went for GH₡15.22 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.
World Fuel Market
The monitoring of the global Standard & Poor’s (S&P’s) Platts on petroleum products performance in the world fuel market shows that the price of Gasoline, Gasoil, and LPG increased in the first pricing-window for July 2024.
Published data for the first pricing-window of July 2024 show Gasoline closed at $842.61 per metric tonne, Gasoil closed at $792.02 per metric tonne, and LPG closed at $535.84 per metric tonne. The net changes indicate that the price of Gasoline has increased by 3.18%, Gasoil by 1.76%, and LPG by 12.15%.
