Fuel prices likely to slow down in first-pricing window of May – IES says

The Institute for Energy Security (IES) in its latest report on the downstream sector has noted that fuel prices are likely to slow down in the first-pricing window of the month of May.

According to the IES, this is largely the result of slowed price increments recorded by refined products on the international market.

“In the coming days of May 2024, consumers are likely to see price slow down for all petroleum products after several weeks of hikes. This is coming largely as a result of slowed price increments recorded by refined products on the international market,” quipped the IES.

According to the IES, per recent price movements recorded on the international market by the refined petroleum products, Gasoil and Liquified Petroleum Gas (LPG) recorded a fall of about 5.87% and 6.56% respectively, however, Gasoline has seen its price increase marginally by about 0.49%.

Further asserting that, the Cedi’s performance continues to fall against the U.S. Dollar with its recent fall estimated at about 1.06%.

“IES Economic Desk monitoring of Ghana Cedi performance in the last 15 days of April on the foreign exchange market (Forex) shows the local currency is still underperforming against the U.S. Dollar. The Ghana Cedi previously traded at GHC13.38 to its counterpart but closed trade at GHC13.52 representing a loss of 1.06% depreciation of its value,” it remarked.

The IES notes that, on a daily rolling basis tracking of price movements on the local fuel market, refined product prices have jumped since the opening of the second pricing-window for April 2024. Tracking of Oil Marketing Companies (OMCs) price data show liquid fuels increased by a combined average of about 0.30%.

On Liquified Petroleum Gas (LPG), the space has seen intense debate between industry players and the regulator (National Petroleum Authority) attempting an imposition of an $80 per metric ton tax on LPG.

“The Institute for Energy Security (IES) computation of national average price for the 3 refined petroleum products over the past two weeks indicate that Gasoline sells at GHC13.81, Gasoil at GHC14.25 per litre respectively, and Liquefied Petroleum Gas (LPG) sells at GHC13.65 per kilogram (kg).

“The IES Marketscan positions Star Oil, Zen Petroleum, and Benab Oil as OMCs selling at least priced over the last two weeks,” the IES posited.

Source: Norvanreports