The Institute for Energy Security (IES) has projected an anticipated increase in the prices of diesel and Liquefied Petroleum Gas (LPG) by 1 percent and 4 percent, respectively, effective from Saturday, September 16, 2023.
However, it is expected that the price of petrol will remain unchanged during the second pricing window.
“The impending increases are coming on the back of an increase in international market price of gasoil by 3.33% and LPG by 2.95%, coupled by a 0.97% depreciation of the Ghana cedi against the U.S. dollar on the foreign exchange market. By range, gasoil and LPG prices are expected to go up by 1% to 4% for the next two weeks ending September 2023,” IES stated.
Regarding the performance of the Ghana cedi, analysis from the IES Economic Desk indicates that the local currency depreciated by 0.97% against the U.S. dollar during the reviewed period, trading at GH¢11.50 compared to the previous rate of GH¢11.39.
Additionally, the price of Brent crude oil exceeded $90 per barrel in the past week, reaching its highest level in ten months. This increase followed the announcement by Saudi Arabia and Russia of an extension to their production and export limits, with Saudi Arabia limiting production by one million barrels per day (bpd) and Russia by 300,000 bpd, extending these measures through the end of 2023.
In the local fuel market, the IES observed mixed reactions from Oil Marketing Companies (OMCs) on a daily rolling basis. While some OMCs maintained their prices, others recorded slight increases in the first pricing window of September 2023.
The average increment was GH¢0.05 for diesel and GH¢0.02 for petrol in the downstream petroleum market. Towards the end of the reviewed pricing window, the IES monitoring revealed that some OMCs experienced fuel shortages at certain outlets.