"Fuel Prices To Increase" - IES
The Institute for Energy Security (IES) projects that fuel prices will rise slightly in the first market cycle of January 2021.
According to the IES, fuel prices have increased locally in the time under study.
‘In the second trading window of December 2020, the price of petroleum products saw the majority of Oil Marketing Companies (OMCs) raise pump prices for gasoline and gas oil. The current national average fuel price per liter at the pump is estimated at GH-4,799 per liter.
According to IES Market-Scan, “For this pricing window, Zen Petroleum, Benab Oil, Petrosol and Frimps Oil sold the lowest price per liter of Gasoline and Gasoil at the pump,” IES said.
IES noted on the world oil market that the Brent crude price rose by 5.03 percent in average price over the duration with the commodity being offered at $51.06 per barrel mark from the average price of $48.82 per barrel mark of the previous window.
After April 2020, the product has continued to grow in price. The rise in the average price of the product over the IES period is due to the vaccinations initiated within the coronavirus period and to the anticipated results of the OPEC+ meeting held on 4 January 2021.
The approval of the stimulus package in the USA also influenced the price of crude within the period, causing it to increase over the period.
As tracked on the Standard and Poor’s Global Platts website, the price of finished goods showed rises in the cost of gasoline and gas oil on the global fuel market over the period. Gasoline saw a price rise of 8.44 percent, finishing the time at $451.95 per metric tonne from an earlier price of $415.32 per metric tonne. Gasoil prices have risen at the end of the period by 6.96 percent, closing trading at $425.30 per metric tonne from a previous price of $396.68 per metric tonne,’ the statement said.
Data analyzed from the foreign exchange (Forex) market by the IES Economic Desk showed that Cedi retained its strength against the U.S. The dollar from the previous window is now trading in the United States at an average price of GHS5.79 to the dollar during the time.
IES noted that due to the 5.03 percent rise in the price of International Benchmark-Brent crude, the 8.44 percent rise in the price of gasoline, and the 6.96 percent rise in the price of gasoline, IES projects domestic fuel prices to rise slightly at the start of the new year.