IES Projects Potential Fuel Price Reduction Amid Global Market Decline
The Institute for Energy Security (IES) has projected a potential decrease in fuel prices – diesel and petrol – in the second pricing-window of February, due to falling refined petroleum product prices on the international market. However, prices of Liquefied Petroleum Gas (LPG) are expected to remain unchanged.
According to the IES, refined petroleum product prices on the global fuel market have experienced a downward trend. Gasoline prices dropped by 1.26%, Gasoil by 4.50%, and LPG by 0.22%. Despite this decline, the Ghanaian Cedi has depreciated by 2.18% against the U.S. Dollar.
“The international fuel market has seen a decline in refined petroleum product prices, with Gasoline dropping by 1.26%, Gasoil by 4.50%, and LPG by 0.22%. However, the Ghanaian Cedi has depreciated by 2.18% against the U.S. Dollar. Given the combined effects of global fuel price trends and the Cedi’s depreciation, the second pricing-window of February is expected to bring mixed reactions on the local fuel market,” the IES stated.
Local Fuel Market Performance
During the first pricing-window of February 2025, prices of petroleum products in Ghana experienced upward adjustments, marking the third consecutive increase since the beginning of the year. Specifically, the price per litre of Gasoil rose by GH₵0.45, while Gasoline increased by GH₵0.24.
Using purposive price sampling from Oil Marketing Companies (OMCs), the IES calculated the national average price for the three refined petroleum products during the first pricing-window of February 2025. The data showed that Gasoline and Gasoil were sold at GH₵15.61 and GH₵15.65 per litre, respectively, while LPG was priced at GH₵18.79 per kilogram (kg).
The IES Marketscan further identified Benab, Star Oil, and Zen Petroleum as the OMCs offering the lowest prices over the past two weeks under review.
Global Fuel Market Overview
Petroleum price performance data published by Standard & Poor’s (S&P) Platts for the first half of February 2025 shows a decline in international fuel prices. The closing price of Gasoline stood at $722.17 per metric tonne, Gasoil at $708.67 per metric tonne, and LPG at $622.46 per metric tonne.
The net changes across all three refined petroleum products indicate price reductions, with LPG decreasing by 0.22%, Gasoil by 4.50%, and Gasoline by 1.26%. This downward trend in international prices, coupled with the Cedi’s depreciation, is likely to influence price movements on the Ghanaian fuel market in the upcoming pricing-window.
Market watchers will be keenly observing how these global price dynamics and local currency fluctuations impact pump prices in the coming weeks.
