According to the Institute for Energy Security (IES), diesel and Liquefied Petroleum Gas (LPG), prices are expected to experience a slight decrease in the first pricing window of July. This projection is based on a 2.6% fall in gasoline prices and a 3.09% fall in LPG prices. The IES analysis also states that the depreciation of the Ghana cedi has had an insignificant impact on fuel prices at the pumps during the first two weeks of July. However, petrol prices will remain unchanged.
The Reduction
The IES projects that the changes in international fuel market prices will influence local market prices in Ghana, resulting in a decrease of 2.64% for Gasoil and 3.09% for LPG in the first two weeks of July.
Monitoring of petroleum product prices on the international fuel market by the IES in the second pricing window of June 2023 revealed closing prices for Gasoline, Gasoil, and LPG as $811.80, $709.84, and $306.25 per metric tonne respectively. This translated to a marginal price increment of 0.95% for Gasoline, and a decrease of 2.64% for Gasoil and 3.09% for LPG in the second pricing window of June 2023.
Analysts are optimistic
The global crude oil market has faced challenges in the first half of 2023, including reduced demand due to China’s COVID-19 restrictions and the U.S. banking crisis. Despite production cuts by leading oil producers, including decisions made by OPEC+, crude oil prices have remained below initial analyst projections at the beginning of the year. However, analysts are optimistic that prices will recover due to increasing production activities in China and ongoing production cuts by crude oil suppliers. As of June 30, 2023, Brent Crude closed at $74.90 per barrel with a 2-week average of $74.85.