Fuel Prices Drop For The Third Consecutive Time, Analyst Predicts Further Reduction In September

• Fuel prices are expected to see successive drops in the pricing windows of September 2024
• An energy analyst told YEN.com.gh that demand on the international market is being affected by the diversion into climate-friendly energies
• The drop in fuel prices is also being attributed to the relative stability of the local currency

Some Oil Marketing Companies (OMCs) have started reducing fuel prices at the start of the first pricing window in September 2024.

Fuel prices have dropped for three consecutive pricing windows after a period of steady increases.

The Centre for Environmental Management and Sustainable Energy director, Benjamin Nsiah, told YEN.com.gh that Ghanaians could expect further drops in fuel prices over the next few months.

"International market prices have declined in recent times and the Cedi is also stable. Prices will decline again beginning 16th September," Nsiah said.

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He also noted that demand on the international market is being affected by the pivot to climate-friendly energies.

State-owned Goil, which previously sold petrol at GH¢14.22 during the second pricing window of August, is now offering it at GH¢14.16.

Diesel, previously priced at GH¢14.90, is now retailing at GH¢14.70.

Past trends in fuel prices

Fuel prices last rose significantly in July, as predicted by industry observers like the Chamber for Petroleum Consumers, who urged the government to reduce LPG taxes or to subsidise its price.

Before June, fuel prices had dropped on the international market, but the Institute for Energy Security noted that the worsening cedi prevented Ghanaians from benefiting.

The Institute of Economic Affairs recently proposed that Ghana adopt the dollar to stabilise the economy as the cedi loses its purchasing power.

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Cedi depreciation challenges

YEN.com.gh reported that the Ghana cedi hit an average of GH¢16 to the US dollar on the retail market.

As of July 2024, the Ghana cedi depreciated by about 19.6 percent to the US dollar on the interbank forex market.

Against the English pound, the cedi has so far depreciated by 20.8 percent and was trading at GH¢19.10 as of July 2024. It has also lost 18.4 per cent in value to the euro and, as of July 2024, was selling at GH¢16.09.

Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh

Source: YEN.com.gh