Petrol and diesel prices are expected to rise by approximately 5% and 4% per litre at fuel stations shortly due to international market fluctuations and the depreciation of the local currency.
Conversely, the Institute for Energy Security predicts that users of Liquified Petroleum Gas (LPG) may benefit from a potential price reduction of around 8% in the coming days.
“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 to rise 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 adjustments and directives from the National Petroleum Authority (NPA) have impacted the local market during the last pricing period and are expected to continue into the second half of April 2024. Some Oil Marketing Companies (OMCs) are striving to integrate these new changes into their operations.
Monitoring by Global Standard & Poor (S&P) Platts of refined petroleum products during the first pricing window for April 2024 revealed the following closing prices per metric tonne: petrol at $937.68, diesel at $841.38, and LPG at $517.38.
This resulted in a net increase of 7.27% and 0.69% for petrol and diesel prices per metric tonne, respectively. Conversely, the price of LPG plummeted by 17.52%, marking the second time such a substantial change has occurred.
During April 2024’s first pricing window, the domestic fuel market faced turbulence due to regulatory directives and international market dynamics. The NPA reversed an earlier decision to suspend the price stabilisation levy as a component of the price build-up for refined petroleum products. In response, OMCs adjusted prices upwards following a prior increase attributed to international price fluctuations and a weakening local currency.
The average price hike for diesel during the review 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.