Fuel prices in Ghana expected to reduce following global market trends - IES

The Institute for Energy Security (IES) has forecasted a slight downturn in fuel prices across Ghana, effective May 16, 2024, in response to a reduction in the prices of refined petroleum products on the global market. This news comes as a potential relief for consumers amid concerns over rising costs of living.

Citing data from international market trends, the IES reported declines in the prices of Gasoline (petrol), Gasoil (diesel), and Liquified Petroleum Gas (LPG), with reductions of approximately 5.68%, 4.51%, and 4.72%, respectively. Monitoring by the Global Standard & Poor (S&P) Platts further corroborated these findings, indicating a significant downturn in petrol, diesel, and LPG prices globally.

Despite marginal increases in certain petroleum product prices during the initial pricing window of May 2024 in the local market, the IES noted that petrol was retailed at GH¢14.22 per litre, diesel at GH¢14.00 per litre, and LPG at GH¢15.05 per kilogramme. However, with the anticipated decrease in fuel prices, consumers can expect some respite, aligning with the downward trend observed in global petroleum product prices.

The decrease in fuel prices is expected to outweigh the impact of the Ghanaian Cedi depreciation, offering a silver lining to consumers grappling with economic pressures. This move may also contribute positively to easing transportation costs and reducing the overall burden on households and businesses across the country.

Stakeholders are hopeful that this anticipated decrease in fuel prices will translate into tangible benefits for the broader economy, fostering stability and resilience in the face of ongoing economic challenges.

Currently, the high cost of fuel has resulted in a high cost of transport, further exacerbating the suffering of the citizenry and businesses.