Starting this week, consumers can expect a slight decrease in the prices of petrol and diesel, attributed to a decline in the prices of finished petroleum products on the global market, according to the Institute for Energy Securities (IES).
On the flip side, the cost of Liquefied Petroleum Gas (LPG) might experience an upward trend due to a combination of an increased product price and the depreciation of the local currency.
“In the wake of the price falls recorded for liquid fuels: gasoline (2.84%), and gasoil (4.84%) on the international market, it is expected that the prices of the two commodities will fall on the domestic fuel market. In the final two weeks in December 2023, the price of liquid fuels on the local market are likely to drop marginally given that net price reductions recorded on international fuels market. However LPG could see its price go up following an increased product price coupled with a depreciated local currency”.
“Specifically, liquid fuels price could go down between 2%-4% respectively, whereas LPG price is expected to go up by about 5%”, it added.
As of December 11, 2023, the Global Standard & Poor (S&P) Platts reported closing prices for refined petroleum products on the world fuel market. The recorded prices per metric tonne were $767.20 for gasoline (petrol), $810.70 for gasoil (diesel), and $573.20 for Liquefied Petroleum Gas.
Upon conducting a comparative analysis of the refined petroleum price data, it was observed that the prices of petrol and diesel experienced a decrease of $22.55 and $39.30 per metric tonne, representing a 2.80% and 4.84% dip in prices, respectively. In contrast, Liquefied Petroleum Gas traded at $573.30, indicating an increase of $50.55 per metric tonne, reflecting a 9.71% rise in price.
During the initial pricing-window of December 2023, the fuel prices in the local market exhibited stability across all petroleum products.
All Oil Marketing Companies (OMCs) monitored in the first two weeks of December 2023 chose to maintain the selling prices of both petrol and diesel, aligning them with the previous closing prices from the second pricing-window. Similarly, the price of Liquefied Petroleum Gas (LPG) remained consistent with the rates observed in the November second pricing window.
Specifically, petrol was retailed at ¢12.21, diesel at ¢13.10, and LPG at ¢13 per kilogramme during this period.