Fuel Price: IES Predicts 4% Reduction In Price Of Petrol And LPG By Middle Of July

Fuel Price: IES Predicts 4% Reduction In Price Of Petrol And LPG By Middle Of July

  • Petrol prices have been projected to reduce by up to 4% from July 16, 2022, according to experts at Institute for Energy Security (IES)
  • According to the IES analysts, Liquefied Petroleum Gas would also see the same magnitude of price reduction
  • However, diesel would not reduce but rather see a marginal increase of 1.03% during the first July pricing window

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For the first time in many months, there would be a reduction in the price of petrol and Liquefied Petroleum Gas (LPG) by the middle of July, experts have predicted.

Fuel pump
A man puts the nozzle of a fuel pump into the tank of a vehicle. Source: Getty Images.
Source: Getty Images

A recent analysis of local and global trends by the Institute of Energy Security (IES) shows the price of petroleum products could decrease by 4% by July 16 – the first pricing window for petroleum products.

The energy think tank has attributed the reduction to the 3.20% fall in the price of gasoline, a 15.71% fall in the price of LPG, and a 2.05% appreciation of the cedi against the US Dollar.

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IES also said the price of petrol will sell below GH¢10.50 per litre while the price of Liquified Petroleum Gas (LPG) is projected to fall further by approximately 4% from its current price.

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However, a 1.97% rise in the price of diesel on the international fuel market may either cause stability in its price, or a marginal jump in price at the pumps of the various OMCs.

Fuel prices for months been rising consistently on the local market due to developments in the international market.

Currently, the national average price of fuel per litre at the pumps is pegged at GH¢11 and GH¢14 for Gasoline and Gasoil respectively.

For the last pricing window, which was the second pricing window of June, prices of fuel on the local market increased by over 4%.

The price of diesel and petrol increased by 5% and 3% respectively.

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The problem of rising fuel prices

YEN.com.gh has reported that since January 2022, the fuel price in Ghana has increased by approximately 48.3%.

Made worse by the supply disruptions caused by the Russia-Ukraine war, the price of petrol and diesel at the pumps stood at GH¢10.23 per litre as of June 20.

But prices have been projected to skyrocket by December if no firm steps are taken.

These consistent fuel price increases represent one of the drivers of the economic hardship and high inflation that Ghana has been hit with. May 2022 inflation data show food price increase was the main driver of the staggering 27.3% year-on-year inflation.

The high inflation is terrible for the ordinary Ghanaian, who is already dogged by challenges like the high cost of borrowing and utilities, among others.

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Source: YEN.com.gh

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