The Institute of Energy Security (IES) has warned of a possible increment in fuel prices for the second time in March 2019.
This is because the projections for March 2019 Second Pricing-Window shows the likelihood of fuel prices hitting an all-time high.
The IES explains that the increment is largely due to the perennial fall of the Ghana Cedi against the dollar.
“The expected increment is not only informed by the marginal rise in finished products prices in the international market but largely attributed to the 4.29 per cent depreciation of the cedi against the dollar over the period,” the IES said in a statement signed by Mikdad Mohammed.
Average fuel prices at the pump increased by 4.8 per cent a week ago after a review of the First Pricing-Window for March 2019 and the adjustment by Oil Marketing Companies (OMCs).
A litre of Petrol and Diesel now sell at GH¢5.18 pesewas, from its oil price of GH¢4.94 pesewas “despite the National Petroleum Authority activation of the Price Stabilization and Recovery Levy (PRSL)”.
Average price of Gasoline and Gasoil at the pump consequently increased from GHc4.94 to GHc5.17.
“IES market-scan shows most Oil Marketing Companies (OMCs) are selling within the range of the prevailing average price, with Lucky Oil selling the least-priced fuel on the market,” the reveals.
World Oil Market
The IES research reveals that a key OPEC player plans to keep oil production below 10 Mb/d in April to shore up prices due to the Venezuela crisis and ongoing sanctions on Saudi Arabia.
“For this reason, average Brent crude price saw a marginal increment from $65.59 per barrel within the window under review. This represents a 0.83 per cent rise in price.”
Gasoline and Gasoil prices also recorded marginal increments according to Standard and Poor’s Platts Assessment. Gasoline increased by 2.74 per cent, rising from $552.61 per metric to $567.78 per metric ton. Gasoil increased from $609 per metric ton to $616.58 per metric ton. This represents a 1.25 per cent increase.
Local Forex and Fuel Stock
IES Economic Desk’s monitoring of the Foreign Exchange market shows the Cedi lost 4.29 per cent of its value against the U.S. Dollar over the past two weeks. It currently trades at GHc5.58, from a previous average of GHc5.35. Also, an approximate 180.000 metric tons of finished products was added to Ghana’s Fuel stock.
By: Kekeli Kuatsenu/awakenewsonline.com