The cost of petrol and diesel is set to rise by approximately 5% and 4% per liter, respectively, at fuel stations in the coming days.
This increase is attributed to global market conditions and the weakening performance of the local currency.
However, there is some relief for users of Liquified Petroleum Gas (LPG) as prices are expected to drop by around 8% soon.
The Institute for Energy Security (IES) explains that recent geopolitical tensions in the Middle East, coupled with decisions by OPEC+ to reduce production, have led to higher crude oil prices, thereby affecting the prices of refined products.
Over the past two pricing windows, liquid fuel prices have consistently risen, with the April 2024 first pricing window showing increases of 7.27% and 0.69% for petrol and diesel, respectively.
Ghana’s economic challenges have also contributed to the depreciation of the local currency, which further impacts fuel prices.
The IES also notes that changes in national policies and directives from the National Petroleum Authority (NPA) have influenced the local market during the last pricing period and are expected to continue into the second half of April 2024.
Oil Marketing Companies (OMCs) are adjusting to these changes in their operations, which may affect prices.
In April 2024, the first pricing window witnessed turbulence in the domestic fuel market due to regulatory changes and global market dynamics.
The NPA’s decision to reinstate the price stabilisation levy, previously suspended, contributed to price adjustments by OMCs, who had already increased prices earlier due to international market trends and currency depreciation.
During this period, the average price increase for diesel was GH¢0.25 per liter, while petrol saw an increase of GH¢0.30 per liter. However, LPG prices remained stable throughout this period.
Source-myjoyonline
