Prices of petroleum products may stay same for the next two weeks despite the reduction in the prices of the finish products on the world market.

According to the Institute for Energy Security, the significant drop in the value of the Ghana cedi against the US dollar in the last two weeks may thwart the expected fuel price reductions in the coming weeks.

In its projection of petroleum prices for this pricing window, the energy think tank said data from the IES Economic Desk on the domestic foreign exchange (forex) market over the last two weeks showed the Ghana cedi closed trading at ¢12.01 to the US dollar, from ¢11.55 at the start of the window. This led to a loss of about 3.98% in value.

"Prices of all petroleum products monitored by the Institute for Energy Security (IES) on the international market fell, alongside the price of Brent crude over the last two weeks. Price of Gasoline [petrol], Gasoil [diesel] and Liquefied Petroleum Gas (LPG) fell by 3.56%, 3.69% and 2.37% respectively, over the period. On the domestic front, the Ghana cedi lost a value of roughly 3.98% against the US dollar, as monitored on the foreign exchange market”, it stated.

Fuel prices went up marginally in the just ended pricing window [April 16 - April 30].

World oil market

Crude oil prices extended last week’s losses and traded lower at $83.3 per barrel for Brent crude at the end of the pricing-window under review, from an initial average price of $85.29 per barrel.

The prices were weighed down by lingering concerns about demand amid economic growth worries.

Local fuel market performance

The second pricing-window for April 2023 saw domestic petroleum products prices make some recoveries at the pump in respond to rising international commodities prices, as recorded in the first-half of April 2023.

The IES monitoring of various Oil Marketing Companies (OMCs) during the pricing-window under review finds the national average price per litre for petrol at ¢12.76p, diesel at ¢12.86p and LPG at about ¢11.60 per kilogramme; clearly showing the price increases at the pump, except for LPG.