Fuel prices may go up again by 7% to 13% from February, according to IES

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According to the Institute for Energy Security (IES), fuel prices will increase by Wednesday.

Fuel costs for gasoline, diesel, and Liquefied Petroleum Gas (LPG) are expected to increase by 7% to 13%, according to IES.

Therefore, gasoline will cost around Ghc15 per liter, while diesel would cost more than Ghc17 per liter.

The steep devaluation of the cedi over the past two weeks and the rising international gasoline costs as shown on the worldwide S&P Platts platform, according to the IES, are to blame for the increase in local fuel prices.

The energy think group observed that despite the government receiving about 41,000 metric tons of diesel under its “Gold for Oil” program, fuel costs will rise.

“On the basis of the rising international fuel prices as observed on the global S&P platform, linked with the local currency’s value decline against the greenback, the Institute for Energy Security (IES) estimates a 7 per cent to 13 per cent jump in the prices of Gasoline [petrol], Gasoil [diesel], and LPG over the next two weeks ending February 14, 2023”.

“The rise in domestic fuel prices would be occasioned in spite of government’s receipt of approximately 41,000 metric tonne of Gasoil under its “Gold for Oil” programme, and that consumers must be prepared to buy for instance, a litre of Gasoline [petrol] for roughly ¢15 in the coming days”, it stated in a statement on an Accra FM Station monitored by the Ghanatodayonline.com.

On the global market, the benchmark price of Brent crude oil jumped from its previous average of $81.72 per barrel to around $86.14 per barrel.

This indicated an increase in average price over the previous two weeks of 5.41%.

Brent crude oil price fell on Friday, January 26, 2023, after starting off steadily rising to close on January 23 at $88.16 a barrel, giving the commodity a weekly finish of flat to down.

After ending the previous day’s trading at $87.28 a barrel and rising from the year’s low of $72.50, Brent completed Friday’s trading at $86.66.

On the domestic market, petroleum products received price rises during the second pricing window for January 2023.

For gasoline and diesel, prices rose by around 9% and 6.67%, respectively.

Diesel prices rose from Ghc14.40 to Ghc15.36 per litre, while gasoline jumped to Ghc13.58 from Ghc12.54.

The price of LPG was estimated to be 12.69 per kilogramme on a nationwide level.

Source: Ghanatodayonline.com

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