Fuel price to remain stable in April – IES

Consumers should be able to heave a sigh of relief as the price of fuel at the various pumps for the first pricing window in April 2021 is expected to remain unchanged, the Institute of Energy Security (IES) has indicated.

IES in a press statement indicated that the 2.05% decrease in the price of the International Benchmark Brent crude, the 2.84% decrease in price of Gasoil, the 1.89% decrease in Gasoline and the relative stability of the local currency against the US Dollar during the period under review, can be attributed to their projection of unchanged prices at the pumps.

“Due to factors including the 2.05% decrease in price of the International Benchmark- Brent crude, the 2.84% decrease in price of Gasoil, the 1.89% decrease in Gasoline price and the relative stability of the local currency against the US Dollar; the Institute for Energy Security (IES) projects for price of fuel on the domestic market at the various pumps to remain the same as we continue into April 2021,” IES explained in the statement.

The statement further explained, “Price of fuel on the local market remained largely stable within the window under review. Price of petroleum products within the second Pricing-window of March 2021 saw the Oil Marketing Companies (OMCs) maintain prices at the pump throughout the period. The current national average price of fuel per litre at the pump is pegged at Gh¢5.16 for both products. For this Pricing-window, Zen Petroleum, Benab Oil, Petrosol and Frimps Oil sold the least-priced fuel on the local market according to IES Market-Scan.

“The Brent crude price decrease is coming on the back of the third wave of coronavirus infections which has forced several European States like France, Poland, Italy, Germany and others to introduce new restrictions on movements in subsequent weeks. The restrictions are expected to reduce crude oil demand. On 24th March however, price of Brent Crude went up by 5.5% due to the unfortunate mishap in the Suez Canal. The canal is a major transportation route for global trade that connects Asia to the Middle East.

“The mishap blocked the delivery of about 13 million barrels of crude according to Vortexa. The situation is expected to cause a short-term delay in Crude Oil imports in Europe, Asia and other parts of the world. The Prices were back again to the downward trajectory on 25th March trading downwards by 3.85% in response to the restrictions in Europe. In preparation for the next OPEC+ meeting, traders still remain on edge for the resolutions from the meeting scheduled for 1st April 2021.”

The prediction comes even as fuel prices in the country have consistently seen a steady increase since the beginning of the year, sparking fears that consumers may end the year paying an all-time high rate per litre of petrol and diesel.

Current figures from the pumps show that prices of petrol and diesel which were both selling at an average price of GHS 4.7 per litre in December 2020, are now being sold at about GHS 5.45 at the major pumps.