Motorists are likely to experience a drop in fuel prices of between 16 percent and 24 percent during the first pricing-window in April, due to a significant fall of 33.36 percent in Brent crude price on the international market, the Institute of Energy Security (IES) has projected.
It said the fall in Brent crude, coupled with a considerable drop in the prices of gasoline by 51.29 percent and gasoil by 27.96 percent on the international market, will push prices downward for consumers, in line with the price deregulation regime.
The energy think-tank added that the price projection however takes into consideration the significant drop in value of the cedi relative to the United States dollar.
“Data collated by IES Economic Desk from the foreign exchange market shows the cedi depreciated by (4.68%) against the U.S. dollar, trading at an average price of GH¢5.59 to the U.S. dollar over the period under review – from a previous rate of GH¢5.34 recorded in the first Pricing-window of March, 2020,” read a statement signed by Raymond Nuworkpor, Research and Policy, IES.
On the world oil market dynamics, crude oil prices remain largely below the US$30-margin for this window due to a drowning global oil market as a result of unmanageable surplus as the world’s largest economies lockdown, cutting consumption by 25 percent, the statement stated.
As a result, it said Brent crude had a thunderous fall by 33.36percent from US$45.89 per barrel to close at US$30.58 per barrel on average terms during the period under review.
In addition, S&P’s Platts benchmark for fuels shows average gasoline price crashing by 51.29% to close at US$211.52 per metric tonne, from a previous average of US$434.23 per metric tonne; while gasoil plummeted by 27.96% to close trading at US$304.57 per metric tonne, from a previous average of US$422.80 per metric tonne.
Meanwhile, fuel prices at the pump experienced an about 8.8 percent average reductions across some major Oil Marketing Companies (OMCs), as against the National Petroleum Authority’s pronouncement of 15 percent reduction during March 2020 second pricing–window.