Despite the drop in the price of finished goods on the global market, petroleum product prices may remain unchanged for the next two weeks.

The Institute for Energy Security claims that the sharp decline in the value of the Ghana cedi relative to the US dollar during the past two weeks may have prevented the anticipated decrease in fuel prices in the upcoming weeks.

According to statistics from the IES Economic Desk on the local foreign exchange (forex) market over the previous two weeks, the cedi concluded trading at 12.01 to the US dollar, up from 11.55 at the beginning of the pricing window, according to the energy think tank's prediction of petroleum prices for this window. A value loss of around 3.98% resulted from this.

“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.