The Institute for Energy Security (IES) is forecasting a decrease in the prices of petrol, diesel, and LPG by 2% to 4% starting August 1, 2024. This prediction follows a slowdown in the cedi’s depreciation and favorable global market conditions. A drop in fuel prices could complement recent reduction in prices of food and easy the pressure on cost of living.
In the second half of July, international market prices saw petrol decrease by 2.99%, diesel by 4.59%, and LPG by 1.10%. Concurrently, the cedi’s depreciation rate slowed to 0.52%, the lowest since February.
The IES attributes the anticipated drop in fuel prices to these positive trends in the global fuel market and the cedi’s improved performance.
Globally, Brent crude oil prices fell below $80 per barrel due to lower demand and a significant reduction in Chinese imports. It traded at $78.70 per barrel, down from $83.03 at the start of the pricing window.
Locally, during the second pricing window of July, Oil Marketing Companies (OMCs) increased the price per litre of petrol by GH¢0.30 and diesel by GH¢0.20. The IES reported national average prices of GH¢14.23 per litre for petrol, GH¢14.70 per litre for diesel, and GH¢15.22 per kilogram for LPG.
The combination of these factors suggests a likely reduction in fuel prices in the coming days, providing some relief to consumers.
However, some oil marketing may keep their price unchanged if their projection suggests that the drop on the international market and cedi performance will be short-lived.
