IES Predicts 5% Petrol, 4% Diesel Price Increment

The Institute for Energy Security (IES) has forecast the price of petrol and diesel to increase further by about 5% and 4% per litre respectively soon.

The IES also said users of Liquified Petroleum Gas (LPG) are billed to enjoy some price cuts by about 8%.

“Following the international market changes resulting from geopolitical tensions in the Middle East, OPEC+ decisions on production cuts among other factors have caused a hike in crude oil prices which influences refined product prices.

Liquid fuel prices have continued rising in a row over the past two pricing windows with April [2024] first pricing window recording 7.27% and 0.69% respectively.

Ghana’s economic turmoil continues to put pressure on the local currency leading to its persistent depreciation since February 2024 with the latest being 2.43% in the April first pricing window,” it said in its latest release.

It continued that national policy changes and directives from the National Petroleum Authority (NPA) had taken their toll on the local market in the last pricing period and were likely to continue in the second half of April 2024 adding that some Oil Marketing Companies (OMCs) were already working with those.

The first pricing window of this month witnessed the domestic fuel market going through turbulence.

It would be recalled that the National Petroleum Authority reversed an earlier decision to suspend the price stabilisation levy as a component of the price build-up for refined petroleum products.

OMCs, in reaction, reviewed the prices of their products upward after an earlier increase.

The average price increase for diesel for the period under review was GH¢0.25 per litre, while petrol was GH¢0.30 per litre. The price of LPG however was unchanged.

According to Global Standard & Poor (S&P) Platts monitoring of refined petroleum products for the first pricing-window for April 2024, saw petrol at $937.68, diesel at $841.38, and LPG at $517.38, per metric tonne respectively.

The new price movement reflected a net effect of 7.27% and 0.69% increment in the price per metric tonne for petrol and diesel respectively.

Meanwhile, the price of LPG fell by a huge 17.52%, being the second time it recorded such a change.

By Samuel Boadi

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