Fuel prices to drop by 4 percent – IES
Prices of fuel are expected to see a drop of between 2 and 4 percent. The Institute of Energy Security (IES), has predicted.
Fuel prices went up in the last pricing window in the middle of October bringing a litre of both petrol and diesel to 5 cedis, 21 pesewas.
Explaining the reasons behind the prediction, the IES said the fall in Brent crude prices, and finished products on the international market, as well as the cedi’s respectable gains against the dollar could lead to prices dropping at the pumps.
By this, the IES is optimistic the drop in the prices of fuel will bring some relief to Ghanaians at the pumps in the first pricing window in November.
Speaking to Citi Business News, Research Analyst at the IES, Mikdad Mohammed said they expect some OMCs to be influenced by the Price Deregulation policy to effect reductions beyond the projected margin.
“Unlike the previous window where we have had the depreciation of the cedi lead the increment, this particular window has had two major positive news. IES economic data show that we had an appreciation of around 2.4 percent from the cedi against the dollar,” he said.
“For Brent crude, we have had a reduction of about 5 percent and finished products have now come down too. When you take gas oil for example, it has come down by about 5 percent, gasoline has also come down to beyond 2 percent. It is the cumulative effect of all of these indices that IES foresee a reduction in prices from the current 5cedis, 21 pesewas to about 5cedis, 10 pesewas” he added.
The window under review saw prices of Gasoline and Gasoil go up as the Institute projected.
Average prices of Gasoline and Gasoil which was GH¢5.70pesewas per litre increased by 0.14pesewas to sell at ¢5.21 pesewas.
Prices of fuel hit 5cedis for the first time in the second pricing window in September.
This was largely due to the depreciation of the cedi.
Some drivers expressed their displeasure over the increase in fuel prices for the window and called on the government to intervene.