In the face of a global surge in crude oil prices, resulting in increased costs for refined products in international fuel markets, domestic petroleum product prices in Ghana are set to continue rising according to the Institute of Economic Studies (IES).
The IES said the Ghanaian market has seen relative stability in liquid fuel prices, with gasoline prices remaining unchanged among Oil Marketing Companies (OMCs) while some OMCs, including Star Oil, Zen Petroleum, Benab Oil, and So Energy, increased the price of Gasoil by an average of approximately GH¢0.40 per liter.
Liquefied Petroleum Gas (LPG) prices also saw an increment of about GH¢0.40 per kilogram (kg).
According to the IES, the national average prices for petroleum products are as follows: Gasoline at GH¢13.06 per litre, Gasoil at GH¢12.92 per litre, and LPG at GH¢12.80 per kg.
OMCs such as Puma, Benab Oil, Zen Petroleum, Star Oil, and SO Energy have been identified as selling their products at the most competitive prices over the past two weeks.
On the World Oil Market, the Brent Crude price experienced a temporary drop after reaching over $97 per barrel but stabilized around $93.56 per barrel during the second pricing window for September 2023.
This shift according to the IES came as traders started taking profits, and the market’s focus shifted to increasing interest rates.
Historically, higher interest rates have negatively impacted oil prices, leading to decreased demand due to reduced economic activity and rising costs.
However, some analysts argue that a more hawkish Federal Reserve could make OPEC+ producers more cautious for a more extended period.
On the world stage, all refined products witnessed price increases during the second pricing window of September. Gasoline, Gasoil, and LPG traded at $975.73, $992.95, and $587.43 per metric tonne, respectively, at the close of the pricing window on September 26, 2023.
These new prices reflect a net price increment of 0.63%, 5.29%, and 2.43% for all refined products on the global fuel market.
Local currency data from the foreign exchange (Forex) market according to the IES showed that the Ghana Cedi depreciated by 0.59%, trading at GH¢11.54p compared to GH¢11.47p at the close of the pricing window against the U.S. Dollar.
These anticipated price hikes, the institute said are driven by rising international market prices for Gasoline (0.63% increase), Gasoil (5.40% increase), and LPG (2.43% increase), as well as a 0.59% depreciation of the Ghana Cedi against the U.S. Dollar in the Forex market.
The expected specific price increments for each petroleum product are approximately 1% per litre for Gasoline, 3% per litre for Gasoil, and 1.5% per kg for LPG.
