The Institute for Energy Security (IES) is predicting a marginal increase in fuel prices at the pumps for the first half of January 2021.
According to the institute, the increase is caused by 5.03% increase in price of International Benchmark- Brent crude, 8.44% increase in price of Gasoline, and a 6.96% increase in Gasoil price.
A statement issued by the IES explained that even though the cedi maitained its stability, external pressures on the price of oil is the main contributor to the marginal increase.
Below is the full statement
FUEL PRICES TO INCREASE MARGINALLY
REVIEW OF JANUARY FIRST PRICING-WINDOW
Local Fuel Market Performance
For the period under review, fuel prices appreciated. Price of petroleum products within the second Pricing-window of December 2020 saw majority of Oil Marketing Companies (OMCs) increasing prices of Gasoline and Gasoil at the pump. The current national average price of fuel per litre at the pump is pegged at GH₵ 4.79 For this Pricing-window, Zen Petroleum, Benab Oil, Petrosol and Frimps Oil sold the lowest price per litre of Gasoline and Gasoil at the pump according to IES Market-Scan.
World Oil Market
Brent crude price within the period increased by 5.03% in average price with the commodity being sold at $51.06 per barrel mark from the previous window’s average price of $48.82 per barrel mark. The commodity continued its rise in price since April 2020. The increase in the average price of the commodity over the period is attribitable to the vaccinations that begun within the period against the virus and the expected outcomes from the OPEC+ meeting that was held on 4th January 2021. The approval of a stimulus package in USA within the period also affected the price of crude, causing it to rise over the period. Finished products price as monitored on Standard and Poor’s Global Platts platform showed increases in the price of Gasoline and Gasoil on the global fuel market within the period. Gasoline saw an 8.44% increase in prices closing the period at $451.95 per metric tonne from an earlier price of $415.32 per metric tonne. Gasoil prices also appreciated by 6.96% closing trading at the end of the period at $425.30 per metric tonne from a previous price of $396.68 per metric tonne.
Data analysed by the IES Economic Desk from the Foreign Exchange (Forex) market shows the Cedi maintained its stability against the U.S. Dollar from the previous window’s, still trading at an average price of Gh¢5.79 to the U.S. Dollar over the period.
PROJECTIONS FOR JANUARY 2021 FIRST PRICING-WINDOW
Owing to the 5.03% increase in price of International Benchmark- Brent crude, the 8.44% increase in price of Gasoline and the 6.96% increase in Gasoil price; the Institute for Energy Security (IES) projects price of fuel on the domestic market going up marginally as we begin the new year.