|
Getting your Trinity Audio player ready...
|
The Institute for Energy Security (IES) has forecasted an imminent fuel price hike in the first half of June 2024. This prediction stems from recent trends in the international fuel market and the weakening performance of the Ghanaian cedi in the domestic forex market.
Despite the international prices of gasoline (petrol), gasoil (diesel), and liquefied petroleum gas (LPG) having decreased by 4.17%, 0.87%, and 3.44% respectively over the past two weeks, these potential savings are likely to be offset by the cedi’s depreciation. The cedi’s significant fall of 4.17% against the U.S. dollar may prevent the local market from fully benefiting from the lower international fuel prices.
World Fuel Market Analysis
IES’s monitoring of the global Standard & Poor’s (S&P’s) Platts data indicates that:
- Petrol prices closed at $851.73 per metric tonne.
- Diesel prices closed at $749.70 per metric tonne.
- LPG prices closed at $444.80 per metric tonne.
These figures represent declines of 4.17% for petrol, 0.87% for diesel, and 3.44% for LPG.
Local Fuel Market Implications
During the second pricing window of May 2024, the expected reductions in local pump prices did not materialize due to the cedi’s poor performance. As a result, the prices for refined petroleum products remained relatively stable across most Oil Marketing Companies (OMCs).
According to IES calculations, the national average prices during this period were:
- Petrol: GH₡14.22 per litre
- Diesel: GH₡14.00 per litre
- LPG: GH₡15.63 per kilogramme
Given these dynamics, the anticipated fuel price hike in June is attributed to the currency depreciation, which nullifies the benefits of the falling international prices. Consumers are urged to brace for this increase, which is a direct consequence of the interplay between global market trends and domestic currency challenges.
