A Research Analyst with the Institute of Energy Securities (IES) Fritz Moses says the prices of fuel will decrease drastically should prices of oil and LPG remain constant on the international market.
Due to the significant appreciation of the Cedi against major currencies including the dollar, prices of fuel are significantly expected to decrease at the various fuel pumps starting from the second half of December.
Speaking on Starr Today with Joshua Kwadwo Mensah Mr. Moses explained the dynamics in what triggers fuel prices to come down or go up.
“On the international market diesel prices fell by some 8.08%, petrol prices fell by 9.02% and LPG prices also fell by some 7.28% for the first pricing window in December. Also for our Cedi in the foreign exchange market what we realized is that the Cedi appreciated by some 6.60% against the dollar currently selling at 14.02ps per dollar. Previously it was selling at 14.96ps per dollar and so these two factors are what’s pushing the prices down locally.
“We are anticipating a 19% fall in prices that will push the current diesel price that is moving to about 18 cedis to about 13 cedis and the current petrol price around 15 cedis to 13.50ps. We are also anticipating that for the current LPG which currently sells at 14.70ps prices will fall to around 12.50ps for the second half of December,” he added.
According to Fritz Moses, although the last fuel price window has been closed, if things go as planned there will be more decrease in the prices of fuel than what we are already seeing.
“Due to the appreciating rate of the Cedi selling below 12 cedis per dollar if that trend should go on and the market prices that we are seeing on the international market for oil and other products remain stable then we may see some further reduction or even some stability in the prices”, he stated.
He further explained that domestically Ghana has a lot to do to save itself from being at the mercy of these external factors.
“We heard just last week about the NPA boss and authorities making a proposal to the cabinet to approve some reduction on the price of LPG. Of course, if that trend should follow into other products – diesel and petrol we will see further price reductions for those products as well. However, if we have to remain or put all our hope on the international market then the forces will then keep determining what we are seeing and in some point bring an increment”.