IES predicts petrol prices may soon cross GH¢9

The Institute of Energy Security (IES) is forecasting a 9% and 5% increase in the prices of Diesel and Petrol respectively by the end of March 2022.

The Institute of Energy Security is also predicting prices of Liquefied Petroleum Gas and Petrol could go up by 3% by the end of March 2022.

According to the IES, the further increase in fuel prices is due to the sharp rise in fuel prices internationally and another sharp depreciation of the Cedi.

Prices for both gasoline and gasoil are currently been sold beyond the Gh¢8 mark per litre at most Oil Marketing Companies.

Based on these projections, users of diesel and petrol should expect the prices of the product to be sold beyond the GHC9 mark.

In a statement issued by the Institute, the IES noted that, “Closing in on the end of March 2022, the Institute for Energy Security (IES) projects a further rise in the price of Liquefied Petroleum Gas (LPG) by 3%, Diesel by 9%, and Petrol by 5% at the pump. This increase has been largely influenced by the sharp rise in fuel prices and another sharp depreciation of the Cedi recorded over the just-ended window.”

Currently, the national average price for both products is Gh¢8.15 a litre.  This is an increase of 8.66 % above the previous average price of Gh¢7.50 per liter.

The statement also notes that the IES Market-scan picked Benab Oil, Goodness Oil, Star Oil and Zen Petroleum as the Oil Marketing Companies with the least-priced fuel on the local market.

Shell/Vivo Energy, Total, Sel, Allied, and Puma sold the highest-priced fuel on the market within the window, selling beyond Gh¢8.25p per litre.

World Oil Market

The price of the international benchmark Brent Crude rose to 14-year highs within the period under assessment, reaching an average of $112.87 per barrel and representing an increase of 19.95% over the previous window’s average price of $94.10 per barrel.

As a result of Russia’s invasion of Ukraine, the volatility of oil prices has grown, highlighting the importance of oil and gas to the global economy as well as the risks associated with supply disruptions.

World Fuel Market

The global Platts platform of Standard & Poor’s (S&P), which monitors the pricing of refined goods such as gasoline, oil, and liquefied petroleum gas (LPG), also indicates that prices have climbed during the just ended window1.

Gasoline’s price rose by 19.30 %, from its initial price of $917.48 to the end date price of $1094.55 per metric tonne, representing a total addition of $117.07 per metric tonne. Additionally, the price of gasoil increased by 34.54 %, reaching $1137.55 per metric ton from a prior price of $845.50.

To close at $996.50 per metric tonne on the international fuel market, LPG’s price increased by 17.80 %, or $150.05. This was up from its previous price of $845.99.

Source: Ghana Business