IES Predicts possible Fuel Price Reduction in February window

The Institute for Energy Security (IES) is projecting a marginal drop in the prices of fuel for the second pricing window in February.

IES projects the price of Gasoil to drop by about 4.26% from GH¢15.90 to about GH¢15.25 in the second week of the pricing window.

 

The price of liquefied petroleum gas is also expected to be pegged at GH¢13.51 per kilogram across the various LPG stations across the country during the pricing window under review.

The changes in the price of gasoil according to the monitoring conducted by IES are largely a result of the directives by the National Petroleum Authority for a price adjustment to reflect the government’s Gold for Oil Policy.

Ghana has recently been hit with high oil prices which triggered the government to come up with the Gold for Oil Policy aimed at ensuring regular and affordable supply of oil.

World oil market

The international crude oil benchmark Brent fell to about $82.89 per barrel on average terms from a previous average rate of $86.14 per barrel.

 

This represented a 3.77% fall in average price over the last two weeks. The window saw the price drop to about $79.72 per barrel at close of trading day February 5, after which price has seen slow increases and closed the window trading day at about $86.39 on February 10, 2023.

This largely was attributed to rebound of China’s Oil demand after review of COVID 19 restrictions.

Fuel market performance

The first pricing-window for February 2023 saw price increases for petroleum products on the domestic market. The first week saw prices increased by some 12.30% and 3.5% for petrol and diesel respectively.

 

The IES monitoring of various Oil Marketing Companies (OMCs) for the pricing-window under review saw the price of diesel dropped by about 4.26%, from ¢15.90 to about ¢15.25 in the second week of the pricing-window as a government intervention to set the price.

At the close of the pricing-window, the national average of petrol and diesel stood at about ¢15.20 and ¢15.30 respectively.

The national average price of liquefied petroleum gas (LPG) as monitored on various LPG Marketing Companies (LPGMCs) is pegged at Gh¢13.51 per kilogramme.

 

SOURCE: CITIBUSINESSNEWS 

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