Fuel prices to drop drastically, set to sell at GH¢9 in January
Fuel prices are set to reach single digits in the first week of January 2023 as the local currency appreciation against the US dollar is expected to force fuel prices down in the country, Energy analyst, Institute for Energy Security (IES) has predicted.
“Despite the marginal rise in the price of Gasoil on the international market, the Ghana Cedi’s appreciation against the Dollar will force prices down locally,” the institute said in its latest analysis.
The IES said on the back of the 5.28% and 5.09% fall in the prices of Gasoline and LPG respectively and the 26.51% appreciation of the cedi against the US dollar in the second pricing window of December, it predicts the domestic OMCs outlets are set to reduce their prices significantly in the first week of 2023, with some selling at single digits.
Prices are set to reach Gh¢9.50p and Gh¢11.60p per litre for Gasoline and Gasoil respectively, and Gh¢9 per kilogram for LPG in the coming days.
The second pricing window of December 2022 saw international market price falls and the Ghana Cedi’s appreciation against the US Dollar reflecting on the domestic fuel market positively at all Oil Marketing Companies (OMC) outlets monitored by the Institute for Energy Security (IES). The price reductions seen over the pricing window peg the national average price per litre of Gasoline at Gh¢12.68 from Gh¢15.16, representing a 16.36% reduction over the period. Gasoil’s national average price per litre moved from Gh¢18.78 to Gh¢15.55; falling by roughly 17.20%.
In the pricing window under review, the IES MarketScan picked Nasona, Shell/Vivo, TotalEnergies, Engen, Sel, and Goil as OMCs with the highest-priced fuel on the market. Star Oil, Frimps, Benab Oil, Zen Petroleum, and Goodness Oil were spotted as some of the OMCs with the least-priced fuel on the market.
The IES Economic Desk’s analysis of the foreign exchange (Forex) market over the last two weeks, shows the local currency made significant gains, appreciating by 26.51% against the US Dollar. The rate at the close of the period under assessment was Gh¢10.31 to the US Dollar from the previous rate of Gh¢14.03, to the US Dollar.