IES reports decrease in petrol and diesel prices
The Institute for Energy Securities has revealed that there is a likelihood of a marginal reduction in petrol and diesel prices this week. This anticipated decline is attributed to a drop in the prices of finished petroleum products on the global market. However, the flip side is that the price of Liquefied Petroleum Gas (LPG) might experience an upswing due to an increase in product prices coupled with the devaluation of the local currency.
The Institute explained, "In the wake of the price falls recorded for liquid fuels: gasoline (2.84%), and gasoil (4.84%) on the international market, it is expected that the prices of the two commodities will fall on the domestic fuel market. In the final two weeks in December 2023, the price of liquid fuels on the local market are likely to drop marginally given that net price reductions recorded on the international fuels market. However, LPG could see its price go up following an increased product price coupled with a depreciated local currency.”
To delve into the specifics, there is an anticipated reduction of 2%-4% in the prices of liquid fuels, namely gasoline and gasoil, while LPG prices are expected to rise by around 5%. This prognosis is derived from the activities on the world fuel market, monitored by the Global Standard & Poor (S&P) Platts. As of December 11, 2023, the closing prices for refined petroleum products stood at $767.20, $810.70, and $573.20 per metric tonne for gasoline, gasoil, and Liquefied Petroleum Gas, respectively.
A comparative analysis of refined petroleum price data indicates a decrease of $22.55 and $39.30 per metric tonne for petrol and diesel, representing a 2.80% and 4.84% dip in prices. Conversely, Liquefied Petroleum Gas saw an increase, trading at $573.30, up by $50.55 per metric tonne, reflecting a 9.71% increase.
Switching focus to the local fuel market, the initial pricing window of December 2023 witnessed stability across all petroleum products. Oil Marketing Companies maintained the selling prices of petrol, diesel, and LPG from the previous closing window. Petrol was retailed at ¢12.21, diesel at ¢13.10, and LPG at ¢13 per kilogramme.
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