IES Projects Stability in Petroleum Prices for August’s Second Pricing Window Amid Slowed Cedi Depreciation

The Institute for Energy Security (IES) is projecting stability in the prices of all petroleum products in the second-pricing window of the month of August due to the combined effects of the slowed depreciation of the local currency and the international market activities observed in the first half of August 2024.

This implies that petroleum prices will remain stable on the local fuel market for the second half of
August 2024 in the absence of sectorial regulatory and policy disruptions.

The price of petrol (gasoline) and diesel (gasoil) at various pumps across the country in the first pricing window of August averaged GHS 14 per litre and GHS 14.58 per litre respectively.

For LPG, the price averaged GHS 15.22 per Kg in the first pricing window of August.

According to the IES, the price performance of gasoline and gasoil in the first half of August continued to remain positive, recording price decreases of 2.83% and 4.46%, respectively.

In sharp contrast, LPG recorded a price increase of about 2.66%. Additionally, the Ghana Cedi depreciated by 0.77% against the U.S. Dollar.

Local Fuel Market Performance

The first pricing-window of August 2024 saw the price of liquid fuels fall at the pumps, marking the first drop since May 2024.

Specifically, the price per litre of Gasoline and Gasoil decreased by an average of GH₡0.20, based on performance data local Oil Marketing Companies (OMCs) monitored over the period.

The Institute for Energy Security’s (IES’) computation of the national average price for the three (3) refined petroleum products during the first pricing-window of August 2024 shows Gasoline and Gasoil sold at GH₡14.00 and GH₡14.58 per litre, respectively, while LPG was priced at GH₡15.22 per kilogram (kg).

The IES Marketscan identifies Star Oil, Zen Petroleum, and Benab Oil as the OMCs offering the lowest prices over the last two weeks.

World Fuel Market

Monitoring of the global Standard & Poor’s (S&P) Platts data on petroleum products’ performance in the world fuel market shows that the prices of Gasoline and Gasoil continued to decline in the first pricing-window of August 2024, following earlier low prices recorded at the end of July 2024.

However, LPG prices increased during the same period. Published data for the first pricing window of August 2024 show Gasoline closed at $794.58 per metric tonne, Gasoil at $722.20 per metric tonne, and LPG at $544.28 per metric tonne.

The net changes indicate that LPG prices inched-up by 2.65%, whereas Gasoline and Gasoil prices decreased by 2.83% and 4.46%, respectively.

Source:norvanreports.com