Fuel price hike looms: IES predicts price surge in June

Fuel price hike looms: IES predicts price surge in June

Fuel prices exceed GH¢15 per litre

The Institute for Energy Security (IES) has predicted an increase in fuel prices 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 recent data by Institute for Energy Security(IES), petrol, diesel, and LPG prices dropped by 4.17%, 0.87%, and 3.44%, respectively, over the past two weeks. Normally, this would lead to lower prices at the pump, but the Ghana cedi’s significant depreciation against the US dollar (4.17% drop) might offset these gains and limit the price reduction for consumers.

World Fuel Market:

According to the Institute for Energy Security’s (IES) analysis of global petroleum product trends, as reflected in Standard & Poor’s (S&P’s) Platts, petrol, diesel, and LPG prices have all declined. The latest data from the second pricing window of May 2024 reveals that petrol prices dropped to $851.73 per metric tonne, diesel to $749.70 per metric tonne, and LPG to $444.80 per metric tonne. This represents a decrease of 4.17% for petrol, 0.87% for diesel, and 3.44% for LPG.

Local Fuel Market:

In the second pricing window of May 2024, the expected price reductions at the local pump were hindered by the significant depreciation of the Ghana Cedi.

Despite this, the prices of diesel and petrol remained relatively stable across most Oil Marketing Companies (OMCs) during the period.

According to the Institute for Energy Security’s (IES) calculations, the national average prices for the second pricing window were GH₡14.22 per liter for petrol, GH₡14.00 per liter for diesel, and GH₡15.63 per kilogram for LPG.

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