IES hints of possible fuel price increase in June

by Business Zone

Consumers of petroleum products in Ghana should be prepared to pay more for the fuel at the pumps in the first pricing window in June, Institute for Energy Security (IES) has said.

In a statement, the energy think tank said per its analysis, it expects the prices of fuel on the domestic market to go above April 2020 levels, shoot up slightly from what consumers enjoyed at the pump in April and May.

“Going by the 23.25 percent surge in price of Brent crude oil, in addition to the 41.80 percent and 22.68 percent significant rise in the prices of gasoline and gasoil respectively on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the domestic market going up, and above April 2020 levels,” it said in a statement.

It added, “The marginal depreciation of the local currency would also be another determinant for the Bulk Distribution Companies (BDCs) in selling to the OMCs, and that would definitely reflect at the pump.”

A litre each of petrol and diesel is currently sold for GHc4.1

For the last pricing window, “Shell (Vivo), Total, Goil, Allied Oil, Star Oil, Petrosol and Puma Energy joined other Oil Marketing Companies (OMCs) to maintain prices at the pump,” the statement said.

“Due to the marginal increase in the prices of oil and fuel on the international market in the first Pricing-window of May 2020, prices of petroleum products on the local market remained largely unchanged within the Pricing-window under review,” IES added.

Source: BusinessZone Online

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