Petrol, Diesel, and LPG prices set to drop from tomorrow
The global oil market is experiencing a significant shift in prices, with prices of finished petroleum products falling on the world market. This trend has resulted in a marginal reduction in prices of petrol, diesel and Liquefied Petroleum Gas (LPG) at the pumps in Ghana. The Institute for Energy Security (IES) has projected that prices of diesel, petrol and LPG will fall to ¢12.30, ¢12.15 and ¢12.12, respectively, from May 16, 2023, for the next 14 days.
The fall in petroleum prices is attributed to the decline in prices of finished products on the global market, coupled with the stability of the Ghana cedi. The Ghana cedi gained 0.17% against the US dollar, which is considered a significant factor in the reduction of petrol, diesel and LPG prices in the country.
During the first pricing window for May 2023, domestic prices of petrol, diesel and LPG fell by an average of ¢0.50 for petrol and diesel, while LPG decreased by ¢0.90. This trend was observed through the Institute for Energy Security’s (IES) monitoring of various Oil Marketing Companies (OMCs) in the country during the pricing window under review. The national average price per litre for petrol was recorded at ¢12.85, diesel at ¢12.80, and LPG at ¢13.46 per kilogram.
The reduction in prices of petroleum products in Ghana is a welcome relief to the public, especially the transport sector. The transport sector, which depends heavily on petrol and diesel, has been grappling with high fuel prices, which have negatively impacted the cost of doing business. The marginal reduction in petrol and diesel prices could potentially provide a much-needed buffer for businesses that have been struggling to stay afloat amid the economic challenges.
In the world oil market, the price of Brent crude reached new weekly lows over the period. The current OPEC+ production restrictions appear to have failed to keep Brent crude prices higher, as prices retested their March 2023 lows last week. As a result, the price of Brent crude traded at an average price of $76.57 per barrel over the past two weeks and closed the window at $78.06 per barrel.
The fall in prices of petroleum products is a reflection of the prevailing market conditions. However, the global oil market remains unpredictable and volatile, which could potentially lead to fluctuations in prices in the coming weeks. As such, stakeholders in the petroleum industry are encouraged to monitor the market closely and make informed decisions that will mitigate any negative impact on their businesses.
The marginal reduction in petrol, diesel and LPG prices in Ghana is a welcome development for consumers and businesses alike. However, it is important to note that the global oil market remains unpredictable and subject to various factors that could potentially impact prices. As such, stakeholders in the petroleum industry must continue to monitor the market closely and take proactive measures to ensure the sustainability of their businesses.
