IES forecasts 1% and 4% price hike in diesel and LPG; petrol price to remain stable
The Institute for Energy Security (IES) has projected a potential increase in diesel and Liquefied Petroleum Gas (LPG) prices by 1% and 4% respectively, effective from Saturday, September 16, 2023. However, petrol prices are expected to remain unchanged during the upcoming pricing window.
These anticipated increases are attributed to several factors, including a 3.33% rise in the international market price of gasoil, a 2.95% increase in LPG prices, and a 0.97% depreciation of the Ghana cedi against the U.S. dollar in the foreign exchange market. The projected price adjustments are estimated to persist for the two weeks ending in September 2023.
In terms of the Ghanaian cedi’s performance, the IES Economic Desk noted a 0.97% depreciation, with the currency trading at ¢11.50 against the U.S. dollar, compared to ¢11.39 at the end of the previous trade period.
Additionally, the global market dynamics are influencing local fuel prices. Brent crude oil prices have surged to over $90 per barrel, marking their highest level in ten months. This spike follows announcements by Saudi Arabia and Russia regarding an extension of their production and export limits, signaling continued constraints on global oil supply.
On the domestic front, the local fuel market has displayed a mixed pattern. While some Oil Marketing Companies (OMCs) have maintained prices, others have implemented slight increases in the first pricing window of September 2023.
The average increment observed stood at ¢0.05 for diesel and ¢0.02 for petrol in the downstream petroleum market. Towards the end of the review period, the IES reported shortages of liquid fuels at select OMC outlets, indicating fluctuations in supply and demand dynamics.
