The Executive Director of the Institute of Energy Security (IES) Nana Amoasi VII says fuel prices will be slightly stable for the second pricing window for July 2020 across various pumps in the country.
In an interview, he said the competition between Oil Marketing Companies (OMC) to control and gain more market share and mounting pressure on government to reduce fuel prices may result in prices remaining largely stable in the second Pricing-window for July.
“The price of Crude oil over the last two weeks went up by about 3.7%. It was close to same margin; 5.5% increase for both petrol and diesel on the world market. We all understand that these variables are very key on what happens on the local market. We also saw the cedi appreciate marginally, but that is not enough to see the price on the local market stay same because of increases of prices on international fuel and oil price”.
Nana Amoasi VII
According to IES, the steadiness of the cedi against major currencies and a rise in the prices of Gasoline and Gasoil on the international market, will be the main factors for the marginal increase.
Currently, a liter of petrol or diesel is pegged at 4 Ghana Cedis, 82 pesewas.
Nana Amoasi was of the opinion that prices are likely to go up again due to the increases Bulk Distribution Companies place on their prices before selling to the Oil Marketing Companies.
“There is a likelihood that OMCs will increase their prices because the importers in the BDCs will increase their prices for the OMCs and they will pass it on to the ordinary consumer”.
Nana Amoasi VII
Global performance per IES findings
According to IES, Brent crude price increased by 3.68% from $41.08 per barrel recorded at the end of the second Pricing-window of June to close at $42.59 per barrel on average terms, at end of the first Pricing-window of July.
Average Gasoline price gained 5.59% to close at $390.73 per metric tonne, from a previous average of $370.05 per metric tonne.
Gasoil appreciated by 5.31% to close trading at $361.80 per metric tonne, from a previous average of $343.57 per metric tonne.
On May 29, IES predicted fuel prices to go up following the 23.25% surge in price of Brent crude oil, in addition to the 41.80% and 22.68% significant rise in the prices of Gasoline and Gasoil respectively on the international market, Energy think tank, the Institute of Energy Security, (IES) has predicted.
“Going by the 23.25% surge in price of Brent crude oil, in addition to the 41.80% and 22.68% significant rise in the prices of Gasoline and Gasoil respectively on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the domestic market going up, and above April 2020 levels”.
“The marginal depreciation of the local currency would also be another determinant for the Bulk Distribution Companies (BDCs) in selling to the OMCs, and that would definitely reflect at the pump”.
A liter each of petrol and diesel was currently sold for 4 cedis 6 pesewas on the average.
