Fuel Watch: Prices of fuel to exceed 5 cedis per litre -IES

Institute of Energy Security (IES) says consumers should brace themselves to pay more for fuel at the various pumps as the price exceeds 5 cedis per litre.

The IES says the increment in price of fuel is occasioned by the 6.33% rise in average Brent crude price, as well as a corresponding 8.81% and 5.56% increase in prices of Gasoline and Gasoil on the international market respectively.

The IES added that the increase can also be attributed to the cumulative depreciation of the Cedi against the U.S dollar.

In an interview Research Analyst at the IES, Mikdad Mohammed said despite the Price Stabilization and Recovery Levy (PSRL) mechanism by the National Petroleum Authority (NPA) price of fuel has gone up.

“Factors for this particular window have been quite high relatively compared to previous figures since we entered 2019,” he said.

This will be the first major increment in prices at the pumps and this is one of the windows that IES is extremely certain about the increment,” he said.

He added that “Our engagement with the NPA tells us that they have already applied the element of the price stabilization and recovery levy as part of their efforts to cushion consumers from the brunt of an increment. But nevertheless the increment was expected. It will only mean that they are mitigating the impact of the increment.”

Fuel prices have largely remained stable since the beginning of the year. Prices as set by Oil Marketing Companies (OMCs) has remained stable with a few marketers reviewing prices downwards to either attract or maintain their share of the fuel market.

Average prices of both Gasoline and Gasoil stood at GH¢4.94 and GH¢4.93 respectively.

But the Institute for Energy Security (IES) remains confident that fuel prices in the First Pricing-window of March 2019 will cross the GH¢5 mark.