[ 2021-02-04 ]

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.

Source - Ghanaian Times

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