The Institute for Energy Security (IES), has projected the price of fuel to remain at current levels for the rest of the month of November, 2021, despite the recent increase in the price of petroleum products.
The price of fuel on the domestic market saw an increase in the first pricing-window of November 2021, as majority of the Oil Marketing Companies (OMCs) added GHp10 to pump prices.
Price of fuel charged by market leaders; TotalEnergies, Shell and GOIL hovers around GHS6.90, while the current national average price of fuel per litre at the pump stands at GHS6.81 per litre for Gasoline and GHS6.79 per litre for diesel.
Oil Marketing Companies (OMCs) that sold the least-priced fuel were Benab Oil, Zen Petroleum, Cash Oil, Goodness Oil and Top Oil, a statement released by IES said.
“For the November Second Pricing-Window, with the 1.54 per cent decrease in the price of the International Benchmark- Brent crude, the 2.40 per cent increase in price of Gasoline, the 0.74 per cent increase in Gasoil price, and the 0.16 per cent depreciation of the local currency against the US Dollar; the Institute for Energy Security (IES) projects for price of fuel to remain stagnant for the window…”
Institute for Energy Studies
Based on data monitored by the IES from the Foreign Exchange (Forex) market, the Cedi is likely to depreciate against the U.S. Dollar by 0.66 per cent to close trading in the window at Gh¢6.13 to the US Dollar from the previous window’s Gh¢6.09 to the US Dollar.
On the international market, the price of Brent crude declined within the period with Brent selling on average at about $83.25 per barrel mark, a 1.54 per cent decrease from the previous window’s average price of $84.55 per barrel mark.
Price of refined products, Gasoline and Gasoil prices as monitored by S&P Global Platt’s platform however experienced marginal changes within the period. The price of Gasoline increased by roughly 2.40 per cent to close the window at $837.21 per metric tonne. Price of Gasoil also increased by 0.74 per cent to close trading at $720.50 per metric tonne.
The constant volatilities of Brent crude prices emanated from the geopolitical tensions existing between OPEC+ and the US as well as the rebound in economic activity as the economic impact of the pandemic subside.
Meanwhile, the benchmark price has fallen for the third consecutive week, on the basis of a strengthening dollar. Thus, a rise in US inflation rate expectations increased speculations of a hike in fuel prices, dampening foreign demand for Crude.
OPEC and its allies have also moved to forecast a downgrade for demand in the fourth quarter of 2021 by 330,000 bpd, citing the ongoing energy crunch and the corresponding rise in inflation as factors weakening the recovery.
Though there are positive signs on the demand side, considering the rapid rise in air travel, “we are not out of the woods yet,” IES said. This is due to the tighter monetary and fiscal policy and the coming winter which are likely to affect market performance.
READ ALSO: Budget to Determine Extension Period of NABCO Trainees
