A predicted reduction in fuel prices is expected to bring relief to consumers starting from May 16, 2024, according to the Institute for Energy Security (IES).
The IES attributes this anticipated decrease to the significant drop in refined petroleum product prices on the international market, which outweighs the cedi’s depreciation.
“Following the changes recorded on the international market for refined petroleum product, Gasoline [petrol], Gasoil [diesel], and Liquified Petroleum Gas (LPG) recorded a fall of about 5.68%, 4.51%, and 4.72% respectively,” the IES stated. “In the second pricing-window for May 2024, ex-pump is expected to fall given the reductions recorded for refined petroleum products on the international market, which is wider than Ghana cedi depreciation.”
Global Fuel Market Trends
According to the Global Standard & Poor (S&P) Platts, which tracks petroleum products’ performance on the world fuels market, petrol, diesel, and LPG prices have experienced a significant decline. Specifically, petrol prices have fallen by 5.68%, diesel by 4.51%, and Liquefied Petroleum Gas by 4.72%. A comparative analysis of the data reveals that all petroleum products have seen a significant price drop on the global market.
Local Fuel Market Performance
In the first pricing window for May 2024, there were marginal increases in the prices of some petroleum products. According to the IES computation, petrol and diesel were selling at GH14.22 and GH14.00 per liter, respectively, while LPG went for GH15.05 per kilogram.
