Fuel prices to go down for second half of November, says IES

The IES says the reduction is due to the 4.44% decrease in prices of international benchmark- brent crude among others

Prices of fuel on the domestic market are expected to go down for the second half of November 2020, the Institute for Energy Security (IES) has projected.

According to the IES, this is due to factors including the 4.44% decrease in prices of the international benchmark- brent crude, the 2.62% decrease in prices of gasoil, the 6.07% decrease in gasoline prices and the 0.17% appreciation of the local currency.

Local forex

Data collated by IES Economic Desk from the foreign exchange (Forex) market shows the Cedi appreciated marginally against the U.S. Dollar, trading at an average price of GHC5.76 to the U.S. Dollar over the period compared to GHC5.77 in the previous window representing a 0.17% appreciation.

Local fuel market performance prices on the local market remained stable within the window under review.

Prices of petroleum products within the first pricing-window of November 2020 saw the majority of Oil Marketing Companies (OMCs) maintaining prices of gasoline and gasoil.

The current national average price of fuel per litre at the pump is pegged at GHC 4.60 For this pricing-window, Zen Petroleum, Benab Oil, Goodness Energy, SO Energy and Alinco Oil sold the least-priced gasoline and gasoil on the local market according to IES market-scan.

World oil market

For the window under assessment, Brent crude price averaged about US$40.54 per barrel mark representing a 4.44% decrease from the previous window’s average of US$42.38.

The Brent crude price decrease is as a result of global volatilities that includes the imposition of new lockdowns in parts of Europe that brought prices to US$37.94 per barrel on Friday, 30 October.

The US elections also had marginal influence on prices of Brent crude as they rose to US$41.23 per barrel on 4 November.

The announcement of a potential COVID-19 vaccine also boosted market’s hopes for a bounce-back of the economy, pushing prices up to US$42.40 per barrel on 9 November and closing the window at US$43.80 per barrel on 11 November.

Gasoline and gasoil prices as monitored on Standard and Poor’s Global Platts platform shows that prices of gasoline and gasoil experienced a reduction.

Gasoline saw a decrease in prices by 6.07% to close the window at US$357.94 per metric tonne from an earlier US$381.07 per metric tonne.

Gasoil prices also declined by 2.62% to close trading at US$325.27 per metric tonne from US$334.02 at the end of the second pricing window of October.

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