Fuel prices to reduce by 2% and 6% from October 16 – IES

The Institute of Energy Security has projected that fuel prices at the pumps will see some marginal reduction from October 16, 2023, the beginning of the second pricing window for the month.

The Institute said petrol, diesel, and Liquified Petroleum Gas are expected to reduce by between 2% and 6%.

It attributed the reduction to international market dynamics.

“Following the fall in the price of refined products prices on the World Fuel Market by 13.06%, 6.40%, and 9.67%, for Gasoline [petrol], Gasoil [diesel], and LPG respectively, and taking into consideration the 1.42% depreciation of the Ghana cedi against the greenback [dollar] currency on the forex market”.

According to the IES, data tracked from the Global Standard & Poor's (S&P's) Platt averages during the first pricing window of October [2023] show the price of petrol, diesel, and LPG traded at $848.30 per metric tonne, $929.36 per metric tonne, and $530.64 per metric tonne respectively on the global market.

Also, the Chamber of Petroleum Consumers (COPEC) has predicted a slight decrease in fuel prices at the pumps across the country from October 16.

According to the Executive Secretary of COPEC, Duncan Amoah, the drop in fuel prices can be attributed to a significant reduction in the international market prices of fuel products and the apparent strengthening of the Ghanaian cedi against the US dollar.

As of now, the average price of petrol in Ghana is GH¢12.63 per liter, while diesel is sold at GH¢13.40 per liter.

COPEC expects a potential decrease in petrol prices to GH¢12.098 per liter, and diesel prices may drop to GH¢12.694 per liter during the second pricing window of October, which commences on October 16, 2023.

"The second pricing window for the month of October under the National Petroleum Authority's price deregulation program on petroleum pricing is set to commence from Monday the 16th of October. Indications of prices based on international price movements and the forex performance over the past fortnight point to some marginal reductions across pumps for the coming window, as confirmed by CBOD petroleum pricing outlook for the window," COPEC's statement noted.

SSD/OGB

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