The Institute for Energy Security (IES) has predicted the sale of oil prices at a single digit in the year 2023.
According to the Institute for Energy Security, Oil marketing companies (OMCs) are expected to reduce fuel prices sold at the local pumps significantly in the first week of January 2023, with some selling at single digits.
IES also revealed that, the prediction is coming on the back of the 5.28% and 5.09% fall in the prices of Gasoline and LPG respectively, as well as the 26.51% appreciation of the Cedi against the US Dollar in the second pricing window of December.
A Research Analyst at Institute for Energy Security (IES), Mr. Fritz Moses, in an interview disclosed that the price of Liquefied Petroleum Gas (LPG) is expected to drop to ghc9 next year January, 2023.
According to Mr. Moses, the downward decline in fuel prices experienced in the last few weeks would be sustained so long as prices of petroleum products on the international market plummet and the Cedi strengthens against the Dollar.
In the first week of January 2022, petrol and diesel were selling at a national average of GHS 6.7 and GHS 6.9 per litre respectively, but diesel is expected to drop significantly to about GHS11.60 from the current national average of GHS15.55, he indicated.
“Despite the marginal rise in the price of Gasoil on the international market, the Ghana Cedi’s appreciation against the Dollar (26.51 per cent) will force prices down locally.
“Prices are set to reach GHS9.50p and GHS11.60p per litre for Gasoline and Gasoil respectively, and GHS9 per kilogram for LPG in the coming days.”Mr. Fritz Moses
The Chamber of Petroleum Consumers (COPEC) also projected that prices of petrol and diesel would record significant decline at the pumps from January 1, 2023.
The Chamber projected that petrol would sell at GHS GHS10.63, representing 13.78% drop, while diesel would sell at GHS GHS12.85, representing a decline of 15.86%
“With the international price decreasing from $573.43/MT to $544.23/MT (-5.09%), the projected retail price of LPG is expected to decrease by about 25.16% from the current average of 13.63/kg to GHS10.20/kg.”The Chamber of Petroleum Consumers
The Second Pricing Window
The second pricing window of December 2022 saw a fall in the international market prices, and the Ghana Cedi’s appreciation against the US Dollar reflecting on the domestic fuel market positively affected at all Oil Marketing Companies (OMC) outlets monitored by the Institute for Energy Security (IES).
The price reductions seen over the pricing window pegged 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%, said Fritz Moses, Research Analyst, IES.
In the pricing window under review, the IES Market Scan 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.