The price of fuel and diesel are projected to remain same or go down for the following two weeks, beginning October 1, 2024, the Institute for Emery Security have stated.
But in the absence of outside policy interventions, the price of liquefied petroleum gas, or LPG, is probably going to increase a little.
“Following the mixed reactions in the international fuel market during the closing weeks of September [2024], gasoil and LPG recorded price hikes of approximately 1.5% and 3.83%, respectively, while gasoline [diesel] experienced a decline in price. Additionally, the local cedi has seen a marginal depreciation against the U.S. dollar, trading about 0.49% lower than its counterparts. Given these developments in both the local currency and foreign fuel markets, the local market is expected to experience slowed price movements for liquid fuels, reflecting a degree of stability”.
Global Market for Oil
Crude oil prices have maintained in the $70 per barrel area in mid-September 2024, contrary to earlier projections of topping $100 per barrel.
Various perspectives exist in the market; OPEC+ anticipates growth driven by imports from China, while the International Energy Agency (IEA) has repeatedly lowered its growth projections. According to the IEA’s most recent projection, the rise in global oil demand in 2024 is expected to be moderate, at 900,000 barrels per day. This is primarily because of China, whose consumption increased at the slowest rate since 2020 in the first half of 2024, at only 800,000 barrels per day year over year.
OPEC, on the other hand, revised its estimate of 700,000 barrels per day to 653,000 barrels per day, indicating an increase in Chinese oil demand of over 600,000 barrels per day.
Performance of the Local Fuel Market
In the second part of September 2024, the costs of liquid petroleum products in the neighbourhood fuel market keep going down.
For liquid fuels, specifically gasoline (GH₵0.99) and diesel (GH₵0.44), all Oil Marketing Companies (OMCs) monitored during the second pricing window lowered their rates per litre. The cost of LPG increased by GH₵0.50 per kilogramme.
Based on sampled petroleum price data from OMCs during the second pricing window of September 2024, the Institute for Energy Security computed the national average price. It found that LPG was priced at GH₵16.43 per kilogramme, while petrol and diesel were sold for GH₵13.21 and GH₵13.69 per litre, respectively.
Source: thenewindependentonline.com