The Institute for Energy and Security (IES) has suggested to the government to apply petroleum stabilization levy, to ensure transportation fares remain stable with regards to the predicted fuel price increase in the first two weeks of the month of December.
A research analyst with the IES, Fritz Moses, in a media interaction said that, with regards to the expected increase in the price of petrol and diesel, government should be ready to apply the petroleum stabilization levy to avert any possible increase in transport fares should in case it happens.
Touching also on their analysis on the fuel prices for the next 2 weeks, he said the predicted increase is as a result of developments around the vaccine.
“Over the last 2 weeks we have seen prices of Brent crude rising on the international market as a result of the developments around the vaccine, the US elections as well as expected production cuts by OPEC+ countries.
“On the impact at the pumps in Ghana, we hope prices per our projections do not go beyond GH₵4.80 per liter for petrol and diesel for the top three OMC’s in Ghana, that is Goil, Total and Shell.”
With regards to transport fares, the IES is saying that, they are not expecting transportation fares to increase as a result of the increase in fuel prices.
The Institute for Energy Security (IES) is predicting a sharp increase in fuel prices in December 2020.
According to the IES, the increase is due to an 11.5% increase in prices of International Benchmark- Brent crude, the 6.94% increase in prices of Gasoline, 7.26% increase in Gasoline prices and the stability of the local currency and by this, consumers are expected to buy fuel at a national average price of GH₵4.61 per litre at the pump.
Touching on the local fuel market performance for the last window of November, the IES indicated that, prices of fuel on the local market remained stable and prices of petroleum products within the second Pricing-window of November 2020 saw majority of Oil Marketing Companies (OMCs) maintaining prices of Gasoline and Gasoil. The current national average price of fuel per litre at the pump is pegged at GH₵4.61.
The IES said the period of November saw an increase in average price commodity being sold at $45.49 per barrel mark representing an 11.5% increase from the previous window’s average price of $40.54 per barrel mark and although the development around the vaccine influenced it, the loosening of restrictions in some part of Europe also played a part.
“The seeming end to the US election drama also influenced the price of the Brent. Also, and more importantly, the hopes of an OPEC+ production cuts extension to at least the first quarter of 2021 saw a boost in bullish sentiments on the international market.”
According to the IES, the period recorded the highest price for the benchmark since early March this year, selling at $48.53 per barrel mark in November.