The Institute for Energy Security (IES) is predicting that oil marketing companies will likely increase the prices of their petroleum products to make up for the marginal price movement of crude oil on the international market.
“Taking into consideration the two percent increment in prices of Crude oil, coupled with the 0.95 percent and 1.01 percent marginal increment in the prices of Gasoil and Gasoline respectively on the international market; the Institute foresees prices of fuel on the local market losing stability,” the energy policy think tank said in a press release.
Currently, the national average price of fuel per litre at the pumps is still pegged at GH¢5.36 for both petrol and diesel after a scheduled increase in their prices in the first weeks of 2020 was averted by the National Petroleum Authority with the application of the Price Stabilization and Recovery Levy (PSRL).
While the exchange rate performance — a key determinant in the price build-up — improved, the energy policy think tank argues that it would still not be enough to offset the increase in prices of oil on the international market.
Crude oil prices continue to remain above the US$60-dollar margin for this window. Escalation of tension between the United States and Iran saw Brent Crude gaining 6 percent to reach US$70.24 per barrel – the first time prices have hit that amount in more than six months.
Oil prices tumbled as President Donald Trump signaled tensions with Iran eased. Over the last two weeks, Brent crude rose marginally from $65.43 per barrel to close at $66.74 per barrel on average terms.