Fuel prices to go up slightly in 1st pricing window – IES

Consumers of petroleum products should be paying slightly higher prices for the fuel  purchase at the country’s various pumps for the next two weeks, the first pricing window for February, 2021.

According to an analysis by the Institute of Energy Security, IES, the increase could be attributed to the 3.9 per cent increase in the price of Brent crude, the 5.10 per cent increase in the price of Gasoil, and the relative stability of the local currency.

A statement issued by the IES also noted that some Oil Marketing Companies (OMCs), may however decide to maintain prices from the previous window.

“Owing to factors including the 3.9 per cent increase in price of the International Benchmark- Brent crude, the 5.10 per cent increase in price of Gasoil, the 7.47 per cent increase in Gasoline price and the relative stability of the local currency; the Institute for Energy Security (IES) projects price of fuel on the domestic market at the various pumps experiencing slight adjustments upwards as we enter the new month, February 2021,” the statement said.

It however, stated that some OMCs might decide to maintain prices from the previous window to maintain market share,” the IES said in a statement.

The statement said for the pricing-window under review, “Price of fuel on the local market remained unstable within the window under review. Price of petroleum products within the second Pricing-window of January 2021 saw majority of OMCs increasing their figures marginally. The current national average price of fuel per litre at the pump is pegged at GH¢4.97.”

On the world oil market, the IES stated that, Brent crude price averaged about $55.75 per barrel mark representing a 5.1 per cent increase from the previous window’s average price of $53.06 per barrel mark.

The Brent crude price increase has been slower than expected due to the return to lockdowns and new restrictions in parts of Asia, particularly China.

Also, the same situation in UK, France and other parts of Europe has contributed to the current trajectory of the price.

The price reduction to $54.75 on  January 18 was in response to the rise in the Coronavirus infections and slow rollout of the COVID-19 vaccines across the world.

The potential delay in the next round of stimulus checks in the USA has also been a factor. Lastly, the grim outlook of the International Energy Agency (IEA) on oil demand that was released within the period affected price of the International benchmark.

Even though prices seem to reduce, they are still higher than the prices that were recorded in the previous window hence the increase in the average price for the window under review.

It further noted that, Gasoline and Gasoil prices as monitored on Standard and Poor’s global Platts platform showed that price of the international commodities Gasoline and Gasoil experienced marginal increments.

“Gasoline saw an increase in price by 7.4 per cent to close the window at $502.50 per metric tonne from an earlier $467.53 per metric tonnes. Gasoil price also increased by 4.99 per cent to close trading at $454.00 per metric tonnes from $431.31 at the end of the first pricing window of January 2021,” it added.

Show More
Back to top button