Fuel prices to fall between 7% and 11% from February 16

The prices of petrol and diesel are expected to drop significantly between 7.1% and 10.8% at the pumps, from Thursday February 16, 2022.

However, that of Liquefied Petroleum Gas (LPG) will go up for the next two weeks.

According to the Institute for Energy Security (IES), petrol will sell at about ¢14.40 per litre, and diesel going for about ¢13.90 per litre in the coming days.

But the price of a kilogramme of LPG may hinged up to sell at ¢14.70 before the close of second pricing-window for February 2023.

The expected fall in petrol and diesel is due a marginal appreciation of the cedi to the dollar and drop in the prices of petrol and diesel globally.

“Following a global market drop in the price of Gasoline [petrol] and Gasoil [diesel] by some -1.60% and -12.80%, respectively, an increase in the price of LPG by 9.13% on the foreign market, and a marginal appreciation of the Ghana cedi against the US dollar, the domestic fuel market is expected to see significant price changes at the pumps”.

World oil market

The international crude oil benchmark Brent fell to about $82.89 per barrel on average terms from a previous average rate of $86.14 per barrel.

This represented a 3.77% fall in average price over the last two weeks. The window saw the price drop to about $79.72 per barrel at close of trading day February 5, after which price has seen slow increases and closed the window trading day at about $86.39 on February 10, 2023.

This largely was attributed to rebound of China’s Oil demand after review of COVID 19 restrictions.

Fuel market performance

The first pricing-window for February 2023 saw price increases for petroleum products on the domestic market. The first week saw prices increased by some 12.30% and 3.5% for petrol and diesel respectively.

The IES monitoring of various Oil Marketing Companies (OMCs) for the pricing-window under review saw the price of diesel dropped by about 4.26%, from ¢15.90 to about ¢15.25 in the second week of the pricing-window as a government intervention to set the price.

At the close of the pricing-window, the national average of petrol and diesel stood at about ¢15.20 and ¢15.30 respectively.

The national average price of liquefied petroleum gas (LPG) as monitored on various LPG Marketing Companies (LPGMCs) is pegged at Gh¢13.51 per kilogramme.

Source: ghextractives.com