Fuel prices will increase by 7% to 13% from February, according to IES

According to the Institute for Energy Security (IES), fuel prices will increase by Wednesday.

Fuel costs for gasoline, diesel, and liquefied petroleum gas (LPG) are expected to increase by 7% to 13%, according to IES.

Therefore, gasoline will cost around $15 per litre, while diesel would cost more than $17 per litre.

The steep devaluation of the cedi over the past two weeks and the rising international fuel costs as shown on the worldwide S&P Platts platform, according to the IES, are to blame for the increase in domestic fuel prices.

The energy think group observed that despite the government receiving about 41,000 metric tons of diesel under its “Gold for Oil” programme, fuel costs will rise.

The Institute for Energy Security (IES) forecasts a 7% to 13% increase in the cost of gasoline (petrol), gasoil (diesel), and LPG over the two weeks ending February 14, 2023, based on rising international fuel prices as seen on the global S&P platform and the local currency’s value decline against the US dollar.

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The government said in a statement on an Accra FM station that “the increase in domestic fuel prices would be occasioned in spite of government’s receipt of approximately 41,000 metric tons of Gasoil under its “Gold for Oil” programme, and that consumers must be prepared to buy for example, a liter of Gasoline [petrol] for roughly 15 in the coming days.”

On the global market, the benchmark price of Brent crude oil jumped from its previous average of $81.72 per barrel to approximately $86.14 per barrel.

This indicated an increase in average price over the previous two weeks of 5.41%.

Brent crude oil price fell on Friday, January 26, 2023, after starting off steadily rising to close on January 23 at $88.16 a barrel, giving the commodity a weekly finish of flat to down.

After ending the previous day’s trading at $87.28 per barrel and rising from the year’s low of $72.50, Brent completed Friday’s trading at $86.66.

On the domestic market, petroleum products received price rises during the second pricing window for January 2023.

For gasoline and diesel, prices rose by around 9% and 6.67%, respectively.

Diesel prices rose from $14.40 to $15.36 per litre, while gasoline increased to $13.58 from $12.54.

The price of LPG was estimated to be 12.69 per kilogramme on a national level.

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