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The prices of petroleum products are expected to fall between 2% and 4% for petrol, diesel, and Liquefied Petroleum Gas (LPG) starting August 1, 2024. This anticipated reduction follows a slowdown in the depreciation of the Ghana cedi during the second half of July 2024 and favorable international market dynamics.
According to the Institute for Energy Security (IES), the price of petrol fell by 2.99%, diesel by 4.59%, and LPG by 1.10% in the second half of July 2024. The Ghana cedi also experienced a slowed depreciation rate of 0.52%, the lowest since February 2024.
IES projects that the combined effect of positive trends in the foreign fuel market and the slowed depreciation of the Ghana cedi will result in a fall in fuel prices in the coming days.
Also read : Ghana Gas to shut down processing plants for maintenance from August 1st to 7th
World Oil Market
The second pricing window for July 2024 saw Brent crude futures dropping below $80 per barrel for the first time since the post-OPEC+ meeting, driven lower by disappointing global demand as Chinese imports in July 2024 hit the lowest level in two years. Brent crude traded at $78.70 per barrel compared to $83.03 per barrel at the start of the pricing window.
Local Fuel Market Performance
During the second pricing window for July 2024, the price of liquid fuels increased at the pumps on the local market. Oil Marketing Companies (OMCs) raised the price per liter of petrol by GH¢0.30 and diesel by GH¢0.20. The IES computation of the national average price for the three refined petroleum products for the first pricing window of July 2024 showed petrol and diesel selling at GH¢14.23 and GH¢14.70 per liter respectively, while LPG was priced at GH¢15.22 per kilogram.
