Energy sector think tank, Institute for Energy Security is predicting that fuel prices may soon increase to GH₵24 per gallon.
That means Ghanaian motorists may soon be paying GH₵5.30 for fuel, according to IES’ latest projection for the next pricing window.
Gasoline and Gasoil are currently selling at the pump at an average of GH¢5.21 and GH¢5.18 respectively with Goil, Total and Shell pricing Gasoline GH¢5.25.
IES is however predicting that the price may inch up by an extra 5p in the current pricing windows because of the poor performance of the cedi against the US dollar and marginal increases in the price of fuel on the international market.
Despite indications of marginal increases in fuel prices on the Ghanaian market in the previous pricing window, prices remained stable.
This according to the IES was due to the decision by the National Petroleum Authority “fully forfeit the Price Stabilization and Recovery Levy (PRSL) mechanism in the Petroleum Price Build-Up (PBU) to further cushion the market.”
IES says it will take a similar move to forestall a marginal increase in fuel prices on the Ghanaian market.
The cedi has weakened after marginal gains against the US dollar over the past few weeks and IES believes this will be a major factor in the pricing of fuel going forward.
“IES Economic Desk’s monitoring of the Foreign Exchange market shows the Ghana Cedi lost 2.71 percent of its value against the U.S. Dollar in the window under review. The Ghana Cedi currently trades at GH¢5.29, from a previous average of GH¢5.15,” the statement indicated.
The Institute also attributed the rising cost of fuel on the international market to global geopolitical events that has led to a decrease in the supply of the commodity.
“Whereas Washington has said it is not seeking “regime change” in Tehran directly or indirectly, Mr. Trump has said he will accept nothing short of an end to Iran’s Nuclear program unconditionally. In the sanctions melee, major and minor buyers of Iranian oil have all disappeared following U.S. sanctions against Iran. Coupled with outages in Venezuela, there has been shortages (particularly of heavy oil) cutting into the profits of refiners who rely on such oils. As refiners ramp up production of gasoline, their margins are narrowing.”
“Average Price of Brent crude has shot up by 1.09 percent rising from $71.28 per barrel to $72.15 per barrel. Gasoline and Gasoil prices also recorded increments according to Standard and Poor’s Platts Assessment. Gasoline increased by 4.38 percent, rising from $718.19 per metric to $749.68 per metric ton. Gasoil increased from $636.97 per metric ton to $639.88 per metric ton. This represents a 0.46 percent increase”, the IES stated.
The IES has consequently advised consumers of fuel to “take note of Fuel Filling Stations price boards before making purchases as some are priced far below the national average price due to the De-regulation policy”.
Story by: Sena Nombo/Radiogoldlive.com