Fuel prices in Ghana to fall by 3% after cedi appreciation against the dollar

The Institute for Energy Security (IES) has predicted a reduction in the prices of fuel on the local market by about 3%.

Fuel prices in Ghana to fall by 3% after cedi appreciation against the dollar

The reduction, according to the IES, is expected to be effective in the second pricing window of this month.

The fall is due to a significant fall in the value of the US dollar, which it says makes the case for fuel price reductions at the pump stronger.

At the same time, the price of Brent crude has declined significantly by 12.16%, coupled with the 10.58% and 8.66% considerable reduction in the prices of Gasoil and Gasoline, respectively on the international market.

Presently, the price of Brent crude is going for US$57.31 per barrel.

IES said market fears and weak oil demand have precipitated a continued oil price slide with the Brent crude benchmark falling on Monday (10 February 2020) to lows as $53.27 not seen since the end of 2018.

Its analysis indicates that the major contributory factor for the free fall of Brent crude prices is the impact of the Novel Coronavirus.

Other factors include hot winter and planned maintenance.

The hydrocarbon industry relies on cold weather across the Northern Hemisphere to drive demand for oil and gas to heat homes and workplaces in the world’s most advanced economies.

Also, most oil industry giants announced way before the Coronavirus about their planned maintenance.

Meanwhile, the first pricing-window of February 2020 saw the majority of OMCs maintaining their prices at the pump to record a national average price of GH¢5.48 and GH¢5.46 for Gasoil and Gasoline, respectively.

Within the period under review, Zen Petroleum, Benab Oil, Nick Petroleum, Frimps, Champion and Cash Oil, were among a few OMCs that sold the least-priced Gasoline and Gasoil on the local market relative to others in the industry as found by IES Market-scan.

Our newsletter gives you access to a curated selection of the most important stories daily.

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022