Fuel Prices To Go Up Between 5% And 9% Barring Govt Intervention

Barring any government intervention, fuel prices will go up between 5% and 9% per litre from January 16, 2023 at the pumps.

This will be the first time in a month that prices of petroleum products will increase.

According to the Institute for Energy Security (IES), the expected surge in fuel prices is as a result of the rise in the prices of the petroleum products on the international market and the depreciation of the cedi.

“Following the 8.69% rise in the price of gasoline [petrol] and 2.19% in the price of LPG [liquefied Petroleum Gas], together with the 9.89% depreciation of the local currency against the US dollar, the Institute for Energy Security (IES) projects a rise in price for products at the various pumps”.

A litre of petrol will thus go for about ¢13.50, whilst diesel will sell at ¢15.00. A kilogram of LPG will also trade at ¢11.00.

“The marginal 0.68% fall in the price of gasoil on the international market will be displaced by the significant depreciation of the cedi, thus pushing the price of the commodity upwards locally, at various Oil Marketing Prices (OMCs) pumps. On percentage terms, prices are set to rise between 5% and 9% in the next half of January 2023, pushing a litre of gasoline [petrol] to roughly ¢13.50, Gasoil [diesel] to Gh¢15.00, and a Kilogram of LPG to ¢11.00.

First pricing window of January 2023

The first pricing-window for January 2023 saw price falls on the domestic fuel market, with various OMCs outlets monitored by the IES recording price changes. This was largely as a result of a fall in prices on the international market and the marginal appreciation of the Ghana Cedi.

The price reductions seen over the pricing-window pegs the current national average price per litre of petrol at ¢12.38, from ¢12.68, representing a 2.37% reduction over the period. Diesel’s national average price per litre moved from ¢15.55 to ¢14.35, falling by roughly 7.72% over the period.

LPG national average price as monitored on various LPGMCs was pegged at ¢10.29 per kilogramme.

Brent crude price surges

The international crude oil benchmark Brent fell to about $81.72 per barrel on average terms from a previous average rate of $85.20 per barrel, representing a 4.80% fall in price.

Brent crude prices have been buoyed in the just-ended by the promising inflation data in the U.S., despite the raging uncertainty surrounding China’s oil demand.

Uncertainties in the oil market particularly regarding the timing of China’s demand recovery as it moves away from its zero-Covid-19 policy pushed prices lower to about $77 per barrel from highs of $85 per barrel.