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IES Forecasts 5% Fuel Prices Hike

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THE PRICE of petrol is expected to increase by 5 to 9 per cent this month according to energy think-tank, Institute for Energy Security (IES).


It has projected the price of diesel and liquefied petroleum gas (LPG) remain unchanged.


“The 5.49 and 4.13 percentage drops in the prices of diesel and LPG respectively on the international market may not necessarily lead to a reduction at local retail outlets as most marketers will look to maintain their prices to offset the losses from the depreciation of the cedi”, the IES stated in its projection for the first pricing window of June 2022.


On the back of the cedi’s depreciation and the 11.05% jump in the price of diesel on the international fuel market, petrol in Ghana is set to sell above GH¢10.00 per litre, which translates into GH¢45 per gallon.


Meanwhile, the price of diesel may cross the GH¢12.00 per litre mark (GH¢54.00 per gallon) across most oil marketing companies (OMCs) in spite of the drop in price on the world market, owing to the decline in the value of the cedi against the greenback.


Currently, the national average price is pegged at GH¢9.75 per litre, and GH¢11.71 per litre for petrol and diesel respectively.


This is an increase of 5.06% on the previous average per litre price of GH¢9.28 for petrol, and a 5.30% increase over the previous diesel average price of GH¢11.12 per litre.


Prices of oil have, over the window under review, seen jumps that have been influenced largely by four main market movers including rising demand across the world, fall in supply, the decline in the United States of America’s inventory which for the first time since August 2021, surpassed 16 million barrels per day and bullish oil traders.

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