November 25, 2020

Fuel prices to go down by 5 to 8 percent – IES

Fuel pump

The Institute of Energy Security (IES) is forecasting between 5% and 8% price reduction in the price of fuel in the second pricing-window of March 2020.

This is contrary to expectations that petroleum prices will go down by about 15%.

The fortnight review of petroleum prices takes effect from Monday, 16 March 2020.

“Taking into consideration the 18.97% plummeting in prices of Crude oil, coupled with the 15.81% and 19.51% considerable crushing in the prices of Gasoil and Gasoline respectively on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the local market falling by 5% to 8% in the second Pricing-window for March 2020”, the IES said in a statement.

According to the IES, the price projection takes into consideration the significant drop in the value of the cedi to the dollar as well as the stock of imported fuel held by Bulk Distribution Companies (BDCs) in early March.

Data collated by the IES’ Economic Desk from the Foreign Exchange market show a cedi depreciation of about 2.62% against the U.S. dollar, trading at an average price of GHS5.48 to one American green back over the period under review. This is from a previous rate of GHS5.34 recorded in the second pricing-window of February 2020.

On the other hand, crude oil prices remain largely below the US$50-margin for this window. However, world oil market opened on the 9 March 2020 with International Benchmark – Brent Crude tumbling more than 30%., the largest fall in a day since the start of the Gulf War in 1991.

 However, prices of petroleum products on the local market remained largely stable within the Pricing-window under review. As a result, the national average price of fuel per litre at the pump is pegged at GHS5.36 and GHS5.38 for Gasoline and Gasoil respectively.

Within the period under review, Zen Petroleum, Benab Oil, Nick Petroleum, Frimps, Champion sold the least-priced Gasoline and Gasoil on the local market relative to the others in the industry, as found by IES Market-scan.

During the last pricing-window review, prices of petroleum products on the local market remained largely stable.

As a result, the national average price of fuel per litre at the pump has been pegged at GHS5.36 and GHS5.38 for Gasoline and Gasoil respectively.

Within the period under review, Zen Petroleum, Benab Oil, Nick Petroleum, Frimps, Champion sold the least-priced petrol and diesel on the local market relative to the others in the industry, as found by IES Market-scan.

Presently a gallon of petrol is hovering around GHS23

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Fuel prices to go down by 5 to 8 percent – IES

Fuel pump

The Institute of Energy Security (IES) is forecasting between 5% and 8% price reduction in the price of fuel in the second pricing-window of March 2020.

This is contrary to expectations that petroleum prices will go down by about 15%.

The fortnight review of petroleum prices takes effect from Monday, 16 March 2020.

“Taking into consideration the 18.97% plummeting in prices of Crude oil, coupled with the 15.81% and 19.51% considerable crushing in the prices of Gasoil and Gasoline respectively on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the local market falling by 5% to 8% in the second Pricing-window for March 2020”, the IES said in a statement.

According to the IES, the price projection takes into consideration the significant drop in the value of the cedi to the dollar as well as the stock of imported fuel held by Bulk Distribution Companies (BDCs) in early March.

Data collated by the IES’ Economic Desk from the Foreign Exchange market show a cedi depreciation of about 2.62% against the U.S. dollar, trading at an average price of GHS5.48 to one American green back over the period under review. This is from a previous rate of GHS5.34 recorded in the second pricing-window of February 2020.

On the other hand, crude oil prices remain largely below the US$50-margin for this window. However, world oil market opened on the 9 March 2020 with International Benchmark – Brent Crude tumbling more than 30%., the largest fall in a day since the start of the Gulf War in 1991.

 However, prices of petroleum products on the local market remained largely stable within the Pricing-window under review. As a result, the national average price of fuel per litre at the pump is pegged at GHS5.36 and GHS5.38 for Gasoline and Gasoil respectively.

Within the period under review, Zen Petroleum, Benab Oil, Nick Petroleum, Frimps, Champion sold the least-priced Gasoline and Gasoil on the local market relative to the others in the industry, as found by IES Market-scan.

During the last pricing-window review, prices of petroleum products on the local market remained largely stable.

As a result, the national average price of fuel per litre at the pump has been pegged at GHS5.36 and GHS5.38 for Gasoline and Gasoil respectively.

Within the period under review, Zen Petroleum, Benab Oil, Nick Petroleum, Frimps, Champion sold the least-priced petrol and diesel on the local market relative to the others in the industry, as found by IES Market-scan.

Presently a gallon of petrol is hovering around GHS23

220

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