Fuel prices to increase by 7%-13% from February 1, 2023 – IES

The Institute for Energy Security (IES) is predicting between 7% and 13% jump in the prices of petrol, diesel and Liquefied Petroleum Gas (LPG), from February 1, 2023, for the next two weeks.

This means petrol will sell at about ¢15 per litre, whilst diesel will go for over ¢17 per litre.

According to the IES, the rise in domestic fuel prices, is due to the sharp depreciation of the cedi during the last two weeks and the rising international fuel prices as observed on the global S&P Platts platform.

The energy think tank pointed out that the increase in fuel prices would be occasioned in spite of government’s receipt of approximately 41,000 metric tonne of diesel under its “Gold for Oil” programme.

“On the basis of the rising international fuel prices as observed on the global S&P Platts platform, linked with the local currency’s value decline against the greenback, the Institute for Energy Security (IES) estimates a 7% to 13% jump in the prices of Gasoline [petrol], Gasoil [diesel], and LPG over the next two weeks ending February 14, 2023”.

“The rise in domestic fuel prices would be occasioned in spite of government’s receipt of approximately 41,000 metric tonne of Gasoil under its “Gold for Oil” programme, and that consumers must be prepared to buy for instance, a litre of Gasoline [petrol] for roughly ¢15 in the coming days”, it stated.

World oil market

The international crude oil benchmark Brent increased to about $86.14 per barrel on average terms from a previous average rate of $81.72 per barrel.

This represented a 5.41% increase in average price over the last two weeks.

Following an initial steady grind upwards to $88.16 per barrel at close January 23,Brent crude oil price settled lower on Friday January 26, 2023, making the commodity’s weekly finish flat to lower.

Brent closed Friday’s trading at $86.66 after closing the day before at $87.28 per barrel, up from the year’s low of $72.50.

Local fuel market pricing

The second pricing-window for January 2023 saw price increases for petroleum products on the domestic market.

Prices increased by some 9% and 6.67% for petrol and diesel respectively.

Petrol per litre increased to ¢13.58, from ¢12.54, and diesel from ¢14.40 to ¢15.36.

The national average price of LPG was also pegged at ¢12.69 per kilogramme.