Petrol and diesel prices are expected to rise by approximately 5% and 4% per liter, respectively, in the coming days due to international market trends and the weakening of the local currency.
However, the Institute for Energy Security predicts that Liquified Petroleum Gas (LPG) users may experience a reduction in prices by about 8% in the same period.
“Following the international market changes resulting from geopolitical tensions in the Middle East, OPEC+ decisions on production cuts among other factors have caused a hike in crude oil prices which influences refined product price. Liquid fuel prices have continued rising in a row over the past two pricing windows with April [2024] first pricing window recording 7.27% and 0.69% respectively. Ghana’s economic turmoil continues to put pressure on the local currency leading to its persistent depreciation since February 2024 with the latest being 2.43% in the April first pricing window”, it mentioned.
According to the Institute for Energy Security (IES), recent national policy changes and directives from the National Petroleum Authority (NPA) have had a notable impact on the local fuel market, with further effects expected in the second half of April 2024 as some Oil Marketing Companies (OMCs) work to implement these changes into their operations.
Monitoring by Global Standard & Poor (S&P) Platts of refined petroleum products showed closing prices for the first pricing window of April 2024 as follows: petrol at $937.68, diesel at $841.38, and LPG at $517.38 per metric tonne.
This represented a 7.27% increase in petrol price, a 0.69% increment in diesel price, and a significant 17.52% decrease in LPG price compared to the previous pricing period.
During this period, the domestic fuel market faced challenges stemming from regulatory directives and international market dynamics. The NPA’s decision to reinstate the price stabilisation levy as a component of the price build-up for refined petroleum products prompted OMCs to adjust prices upwards, following an initial increase due to international market movements and currency depreciation.
The average price increase for diesel during this period was GH¢0.25 per litre, while petrol saw an increase of GH¢0.30 per litre. However, the price of LPG remained unchanged.