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    Expect another fuel price hike in February – IES

    The Institute for Energy Security (IES) is projecting a further increase in the prices of Liquefied Petroleum Gas (LPG), Diesel, and Petrol at various pumps across the country, over the next two weeks.

    According to the Institute for Energy Security, this is in spite of the suspension of the Price Stabilization and Recovery Levy (PSRL).

    Over the last two weeks, prices of Petrol and Diesel rose by roughly 3% from Gh¢6.70 a litre on average terms to reach Gh¢6.94 per litre.

    The current national average price for Petrol is pegged at GH¢6.90 per litre, while Diesel stands at GH¢6.98.

    In a statement issued by the Institute, the IES attributed the imminent increase in the prices of fuel to the 8.52% increase in the price of Brent crude, a 5.5% rise in LPG price, a 6.23% increase in the price of Gasoline, and 9.86% jump in Gasoil price, among others.

    “Over the next two weeks, the Institute for Energy Security (IES) foresees the prices of Liquefied Petroleum Gas (LPG), Diesel, and Petrol recording yet another jump at the pump, in spite of a suspension of the Price Stabilization and Recovery Levy (PSRL). The pending increases come on the back of an 8.52% increase in the price of Brent crude, a 5.5% rise in LPG price, a 6.23% increase in price of Gasoline, and 9.86% jump in Gasoil price; all on the international oil and fuel markets. Further depreciation of the Ghana Cedi against the US Dollar on the foreign exchange (Forex) market adds on to the factors that will push up the prices of the commodities on the local market,” IES said in the statement.

    The IES however noted that, “Should there be a reintroduction of the PSRL, the IES can project the prices of Petrol and Diesel sold by the Oil Marketing Companies (OMCs) increasing by at least 25 Pesewas per litre.”

    “The impending price increases could see all the major OMCs crossing the Gh¢7 per litre mark for Gasoil and Gasoline, moving the price increases for both products over the past 6-months beyond the 16 percentage mark recorded at end January 2022,” it added.

    Below are excerpts from the IES statement

    For the pricing window under review, that is the January 2022 second pricing window, Prices of fuel at local pumps increased within the period under review in response to rising international oil and fuel prices, and the depreciation of the Ghana Cedi against the greenback.

    The IES Market-scan picked Benab Oil, Dukes Oil, Star Oil, Reliance, Goodness Oil and Westport as the Oil Marketing Companies (OMCs) with the least-priced fuel on the local market.

    On the upside, some OMCs including Puma Energy, Ready, Total, EV were spotted selling Gasoil above Gh¢7.00 per litre for the first time.

    World Oil Market

    On the world market, price of international benchmark, Brent, rose within the period, pushing prices to an average of $87.16 per barrel, representing an increment of 8.52% from the previous window’s average price of $80.30 per barrel.

    Within the last two weeks, Brent crude price touched $90 a barrel, occasioned by the low Cushing and distillate inventories, combined with the supply jitters in Europe. The stalemate of Russia-Ukraine, and falling Russian seaborne crude imports from the Baltics also affected supply, particularly into Europe. However, prices fell back to $89 before the market closed for that day.

    Price of the refined products such as Liquefied Petroleum Gas (LPG), Gasoline and Gasoil monitored on Standard and Poor’s (S&P’s) global Platts platform however experienced significant increments within the period under assessment. The current price increases is extending the gains being recorded on the market over the past six months, with Gasoline in particular recording a rise of 13.37% since August 2021.

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