IES anticipates 2%-4% reduction in pump prices starting today

The Institute for Energy Security (IES), says it anticipates a 2 to 6 percentage points decrease in petroleum pump prices starting today, Monday October 16, 2023 – the second pricing window of the month of October.

According to the IES, the reduction in prices is a direct reflection of the evolving dynamics in the global energy market. The reduction in the pump prices for all the major petroleum products, namely petrol, diesel, and Liquefied Petroleum Gas (LPG) is expected to ease the burden on consumers.

The pivotal catalyst behind this downward price adjustment can be attributed to the recent decline in refined product prices in the world fuel market. This substantial drop, amounting to 13.06%, 6.40%, and 9.67% for Gasoline (petrol), Gasoil (diesel), and LPG, respectively, can be attributed to the shifting winds of the global energy landscape. Notably, the 1.42% depreciation of the Cedi against the U.S. dollar has also played a pivotal role in the pricing recalibration.

Data from the Global Standard & Poor’s (S&P) Platt averages during the initial pricing window of October 2023 underscores this price adjustment. It elucidates that the cost of petrol, diesel, and LPG traded at $848.30 per metric tonne, $929.36 per metric tonne, and $530.64 per metric tonne, respectively.

This shift carries a net price effect of -13.06%, -6.40%, and -9.67% for all refined petroleum products within the global fuel market.

In the local fuel market, Oil Marketing Companies (OMCs) have portrayed a spectrum of responses concerning petroleum product prices. While some market leaders, such as Go Energy and Total Energies, have maintained the prices of petrol and diesel in response to international trends, others have made marginal adjustments, increasing the price of diesel by approximately ¢0.25 per litre.

Additionally, the price of LPG has experienced four consecutive increments, with a slight rise of about ¢0.40 per kilogramme in the local market, reflecting the impact of global forces on local dynamics.

Source: Norvanreports