Fuel prices are expected to increase in the first half of June 2024 due to developments in the foreign fuel and domestic forex markets, as the Cedi’s performance worsens.
According to the Institute for Energy Security (IES), gasoline, gasoil, and liquefied petroleum gas (LPG) all recorded a decrease of about 4.17%, 0.87%, and 3.44%, respectively, over the last two weeks. However, the massive fall (4.17%) of the Ghana cedi against the U.S. dollar may prevent a realisation of the full gains made on the world fuel market on the local fuel market.
IES monitoring of the global Standard & Poor’s (S&P’s) Platts on petroleum products performance in the world fuel market shows that the prices of petrol, diesel, and LPG have all decreased. Published data for the second pricing window of May 2024 indicate that petrol closed at $851.73 per metric tonne, diesel closed at $749.70 per metric tonne, and LPG closed at $444.80 per metric tonne. The net changes indicate that the price of petrol has fallen by 4.17%, diesel by 0.87%, and LPG by 3.44%.
In the local fuel market, the performance in the second pricing window for May 2024 shows that the loss in local currency’s value stalled expected price reductions at the domestic pump. The Institute for Energy Security’s (IES’) calculation of the national average price for the three refined petroleum products for the second pricing window for May 2024 shows petrol and diesel selling at GH₡14.22 and GH₡14.00 per liter respectively, whereas LPG went for GH₡15.63 per kilogramme.
This expected increase in fuel prices is likely to have a ripple effect on the cost of living in Ghana, as fuel prices are a key determinant of inflation. Consumers are advised to prepare for the potential increase in fuel prices in the coming weeks.
