In its Projections for the April 2022 First Pricing Window (April 1 to April 16, 2022), the Institute attributed the expected marginal drop in fuel prices to the fall in prices on the international market and Government’s proposed forex support for the bulk oil importers.

“However, barring any cushioning from market players for consumers, the changes in the market variables and the government’s announced intervention may not be enough to produce any significant drop in the prices of fuels on the local market.

“Should that be the case, it may not stall an increase in transportation fares,” it said.

In the March 2022 Second Pricing Window, fuel prices at the various pumps across the country experienced sharp leaps. Petrol sold beyond GHS9.70 per litre whereas diesel sold above Gh¢10.50 per litre at most Oil Marketing Companies (OMCs).

The current national average price for petrol is pegged at GHS9.80 per litre and GHS10.70 per litre for diesel.

This is an increase of 20.25 per cent above the previous average price of GHS8.15 per litre for petrol and a 31.29 per cent increase for diesel price, the IES said.

The Government on Thursday, March 24, 2022 announced a reduction of the margins on fuel by 15 pesewas per litre for the next three months effective April 1, 2022.

Addressing a press conference in Accra, Mr Ken Ofori-Atta, the Minister of Finance, announced a reduction in the BOST Margin by 2 pesewas per litre, and the Unified Petroleum Pricing Fund Margin by 9 pesewas per litre.

The Government further reduced the Fuel Marking Margin by 1 pesewa per litre, with the Primary Distribution Margin also reduced by 3 pesewas per litre.

In its Review of the March 2022 Second Pricing Window, the IES observed that Brent Crude price on the international market fell from its highs at the beginning of March but closed the window above the $120 per barrel mark.

“For the window under assessment, prices reached an average of $108.27 per barrel, representing a 4.08 per cent reduction over the previous window’s average price of $112.87 per barrel,” it said.

The IES said data analysed by its Economic Desk within the window revealed that the Cedi further depreciated against major trading currencies on the Foreign Exchange (Forex) market.

The Cedi depreciated further by 1.5 per cent to close at GHS7.28 to the Dollar from the earlier window’s rate of GHS7.17 to the Dollar, it said.