Fuel Prices to Rise Between 5% And 9%

Fuel Prices to Rise Between 5% And 9%

Unless government intervenes, fuel prices will rise by 5% to 9% per litre beginning January 16 2023. Prices for petroleum products will rise for the first time in a month.

According to the Institute for Energy Security (IES), the expected increase in fuel prices is due to an increase in the prices of petroleum products on the international market as well as the cedi’s depreciation.

“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,” the think tank said.

A litre of petrol will therefore cost about ¢13.50, while diesel will cost around ¢15.00. A kilogramme of LPG will also be sold for ¢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.”

The domestic fuel market saw price drops during the first pricing window for January 2023, with various OMCs outlets monitored by the IES recording price changes. This was primarily due to a drop in international prices and a 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.

Source: Energy Ghana





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