The Institute of Energy security (IES) believes there could be a considerable upward change in the price of Liquefied Petroleum Gas (LPG) on the local market in the subsequent days. The institute also believes the price of Petrol and Diesel could remain unchanged, stating that prices of the two commodities have remained relatively stable on the market over the past couple of weeks in line with the market fundamentals.
A lead researcher for the IES, Mikdad Mohammed, has explained the reasons for the predictions in the projections.
According to him, two major issues account for the increment at the pump for LPG; that is an increase in price of LPG by 14.5% on the international market in addition to and the activation of revised price stabilization levy and energy debt levy build up for LPG. Unlike other products like Petrol and Diesel that has moved for about 3.7% as a result of the element of taxes are expected to remain the same. But for LPG, the increment on the international market in addition to taxes could see an upward adjustment for about six to seven percent for LPG users.
“For this particular pricing window, two major things account for the increment we are seeing at the pump for LPG in particular. The first factor is the international market; and given that over the past two weeks we have seen prices rise up higher to 14.5% on the international market. But when you also come down and look at the policy around LPG, we have also seen the activation of the revised stabilization recovery levy and the energy debt levy in the price build up for LPG and also for petroleum products. So whereas for other products like diesel and petrol where we expect the prices to stay the same, we have seen them move for about 3.7% because of the element of taxes. But for LPG, where on the international market saw increment in addition to taxes, we have seen taxes rise about six to seven percent”.he explained
Story By : Nicodemus Attipoe
