Expect 4% fall in fuel prices in August – IES

The Institute of Economic Studies (IES) says Ghanaians should expect a fall of between 2% and 4% in the price of fuel products in the first half of August 2024.

IES Research Analyst, Adam Yakubu in a statement explained that the fall is a result of changes in the international fuel market and the slowed nature of depreciation of Ghana Cedi recently.

According to him, the global Standard & Poor’s (S&P’s) Platts on petroleum products performance in the world fuel market shows that the price of Gasoline, Gasoil, and LPG fell in the second pricing window for July 2024.

Gasoline, Gasoil, and Liquefied Petroleum Gas (LPG) recorded favourable prices in the second pricing window for July 2024. Precisely, the price of Gasoline fell by 2.99%, Gasoil by 4.59%, and LPG by 1.10% in the second half of the month of July 2024. The Ghana Cedi also recorded slowed depreciation (0.52%), the lowest since February 2024.

Following the positive realized on the foreign fuel market coupled with the slowed depreciation of Ghana Cedi recorded on the domestic forex market, the Institute for Energy Security (IES) projects a fall in fuel prices in the coming days.

This anticipated fall in the first half of August 2024 is attributable to the favourable international market dynamics. Fuel prices are expected to fall between 2% and 4% for the three petroleum products under review.

According to the IES, The second pricing-window for July 2024 has for the first time since the post-OPEC+ meeting seen Brent futures dipped below $80 per barrel, driven lower by disappointing global demand as Chinese imports in July are set to hit the lowest level in two years.

“Analysts say, the decline might be somewhat overdone considering the geopolitical risk upside, with Israel-Lebanon flaring up over the weekend and Venezuela’s highly contested election lifting the risk of operations in the Latin American nation.

“Brent Crude traded at $78.70 per barrel compared to $83.03 per barrel at the start of the window, representing 5.21%. fall in price. This fall is seen as the lowest price decline since the OPEC+ decision to suspend production cuts two months ago.”

Below is the full statement

IES_AUGUST_2024_FIRST_PRICING_WINDOW_PROJECTION

Source: Today.com.gh