You will pay more for fuel as prices go up today – IES

The Institute for Energy Security (IES) has predicted fuel hikes in the second pricing window which begins today.

In a release presenting a summary of the market performance for the first pricing window of January 2020 and its forecast, IES stated: “Although the prediction takes into account the Cedi’s marginal gain, Oil Marketing Companies (OMCs) may still increase prices at the pump to compensate for the substantial increment of prices on the international market”.

IES added that it “foresees prices of fuel on the local market losing stability”.

The energy think tank came to this conclusion taking into consideration the 2 per cent increment in prices of crude oil, coupled with the 0.95 per cent and 1.01percent marginal increment in the prices of gasoil and gasoline respectively on the international market.

IES explained that the expected marginal increases in local fuel prices during the first half of January 2020 were averted, with the application of the Price Stabilization and Recovery Levy (PSRL) by the National Petroleum Authority (NPA).

This was done to absorb the shocks of the marginal increase in the prices of oil and fuel on the international market in late December 2019. Consequently, the national average price of fuel per litre at the pump was GH¢5.36 for both gasoline and gasoil.

IES assessment of the world oil market showed that crude oil prices remained above the $60-dollar margin for the first half of January 2020. Escalation of tension between the United States and Iran saw Brent Crude gaining 6 per cent to reach $70.24 per barrel – the first-time prices have hit that amount in more than six months.

Oil prices tumbled as uS President Donald Trump signalled tensions with Iran eased. Over the last two weeks, Brent crude rose marginally from $65.43 per barrel to close at $66.74 per barrel on average terms.

Standard and Poor’s Global Platts benchmark for fuels shows average gasoline price increasing by 1.01% to close at $623.13 per metric tonne, from a previous average of $616.92 per metric tonne; while gasoil increased by 0.95% to close trading at $611.85 per metric tonne from a previous $606.08 per metric tonne, IES explained.