The price of petrol and diesel is projected to further increase by about 5% and 4% per litre respectively at the pumps in the coming days.

This results from international market dynamics and poor performance of the local currency.

According to the Institute for Energy Security, Liquified Petroleum Gas (LPG) on the other hand could see users enjoy some price cuts by about 8% in the coming days.

“Following the international market changes resulting from geopolitical tensions in the Middle East, OPEC+ decisions on production cuts among other factors have caused a hike in crude oil prices which influences refined product price. Liquid fuel prices have continued rising in a row over the past two pricing windows, with April [2024] first pricing window recording 7.27% and 0.69% respectively. Ghana’s economic turmoil continues to put pressure on the local currency leading to its persistent depreciation since February 2024 with the latest being 2.43% in the April first pricing window”, it mentioned.

The IES further said the national policy changes and directives from the National Petroleum Authority (NPA) have affected the local market in the last pricing period and its likely to continue in the second half of April 2024 as some Oil Marketing Companies attempt to incorporate the new changes to their operations.

World Fuel Market

The Global Standard & Poor (S&P) Platts monitoring of refined petroleum products posted the following closing price for the first pricing-window for April 2024: petrol $937.68, diesel $841.38, and LPG $517.38, per metric tonne respectively.

The new price movement reflected a net effect of 7.27% and 0.69% increment in the price per metric tonne for petrol and diesel respectively.

On the other hand, LPG price fell by a whopping 17.52%. It was the second time the product price has recorded such a change.

Local Fuel Market Performance

In April 2024, the first pricing window saw the domestic fuel market experience turbulence spanning from regulatory directives and international market dynamics.

The National Petroleum Authority reversed an earlier decision to suspend the price stabilisation levy as a component of the price build-up for refined petroleum products. In reaction to the above decision, Oil Marketing Companies (OMCs) reviewed prices upward after an earlier increase due to market dynamics of international price movements and a depreciating local currency.

The average price increase for diesel for the period under review was GH¢0.25 per litre, whereas petrol was GH¢0.30 per litre. The price of LPG however remained unchanged.