IES Projects Fuel Price Hike

The Institute for Energy Security (IES) has projected fuel prices to rise on the local market by up to 2.5 percent in the second pricing window for this month.

In a statement issued signed by Richmond Rockson, its Principal Research Analyst, IES said the projection was premised on fundamental indicators such as the rise in the price of gasoline, gas oil and Brent crude oil on the international market.

However, it said this increase may be averted by an intervention from the National Petroleum Authority (NPA) if it decides to trigger the price stabilization mechanism in the period under review.

Over the last two weeks, IES said consumers of fuel have had to pay more for petroleum products purchased at the pump.

All Oil Marketing Companies (OMCs) increased the prices of gasoline and gas oil at an average of two percent.

According to IES, the national average selling price of a litre of gasoline and gas oil currently stands at GH¢4.57 and GH¢4.56 respectively, adding that its survey indicates Zen Petroleum, Benab Oil, Pacific, Lucky Oil and Frimps Oil lead the chart of OMCs that are selling the cheapest fuel per litre at the pumps.

It noted that data from the foreign exchange market suggested a fairly stable local currency, as the local currency closed trading at GH¢4.55 to a dollar, with a depreciation of 0.89 percent.

From April 1, this year to date, it said total petroleum imports recorded stand at 225,886 metric tonnes; 98,220 metric tonnes of gasoline, 120,516 metric tonnes of gasoil and 7,150 metric tonnes of Butane.

“Within the period under review, Brent crude oil closed trading at $68.96 per barrel from a previous average of $66.85, representing 3.16 percent. And Brent is in position to post extra gains within the next two weeks due to shrinking global oil inventories and concerns over the escalating military activities in the Middle East. As at today, Brent crude is trading around $72 per barrel mark, one of the highest averages in recent times.

 

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