Fuel prices to go up marginally – IES
The Institute of Energy Security (IES) has projected a hike in fuel prices in the second half of June 2020.
According to the Institute, the possible upward price adjustments may not be close to the increases experienced over the last two weeks.
The projection comes after Brent crude price moved above the $35 per barrel mark within the past pricing-window. Over the period, Brent Oil hit $42.3 a barrel for the first time since 10 March.
“This positive gain can be attributed to the easing of restrictions in economic activities around the world, as well as reaction to OPEC+ agreed extension to historic production cuts of 9.6mbpd for additional month (till the end of July).!
“Following this, Brent crude appreciated by 16.19% from $33.72 per barrel recorded at the end of the first Pricing-window of June to close $39.18 per barrel on average terms.” part of the statement read.
IES projected the slight increase of fuel on the local market due to Brent Crude appreciating by 16.19%.
The institute, however, believes the Oil Marketing Companies (OMCs) may hesitate to increase prices at the pump owing to competition for market share.
Read the full statement below: