Institute of Energy Security predicts stability in fuel prices

The Institute of Energy Security (IES) has projected that fuel prices at the various pumps will not see any major change during the second pricing window spanning from May 16 to Sunday, May 31.

A motorist holds a fuel pump at a Gulf petrol station in London,  file. REUTERS/Luke MacGregor/File Photo

The energy think tank said this is due to the marginal rise in fuel prices on the global market and the depreciation of the cedi.

“Going by the 5.31% and 17.96% appreciation in prices of Crude oil and Gasoline respectively, and the fact that Gasoil tumbled by 8.14% on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the local market remaining largely unchanged in the second Pricing-window of May 2020,” an analysis by the IES said.

“The expected stability in prices of fuels at the pump takes into account the local currency’s marginal depreciation against the U.S. Dollar,” the statement added.

The various Oil Marketing Companies (OMCs) reduced their ex-pump prices by about 5% during the last pricing window which ends today (Friday, May 15, 2020).

A litre each of petrol and diesel sold for GHC4.60 on the average.

“While Goil, Shell (Vivo), Petrosol, Puma and Total Ghana trimmed their prices to sell at an average per-litre price of Gh¢4.09 for Gasoil and Gh¢4.11 for Gasoline, few other Oil Marketing Companies (OMCs) moved their prices below the Gh¢4.00 per litre mark, to produce a national average price of Gh¢4.01 for Gasoline and Gh¢4.03 for Gasoil,” IES added.

Global performance of crude oil prices

The IES said that “Brent crude price remained largely above the $25 per barrel mark for the Pricing-window under assessment. Over the period, Brent Oil hit $30 a barrel for the first time since April 15.”

“This positive gain can be attributed to the easing of restrictions in economic activities around the world, as well as reaction to the start of production cuts.”

IES concluded that “following this, Brent crude appreciated by 5.31% from $25.98 per barrel recorded at the end of the second Pricing-window of April to close at $27.36 per barrel on average terms at end of the first Pricing-window in May 2020.”

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