IES predicts marginal decrease in cost of fuel for first pricing window in November

Consumers of petroleum products should be paying lower prices for fuel they purchase at the various pumps, for the next two weeks which is the first pricing window in November 2020.

This is according to energy think tank, Institute of Energy Security (IES).

IES, in a statement, attributed its prediction to the decrease in prices of International Benchmark- Brent Crude, the 2.62% decrease in prices of Gasoil, as well as the 0.17% appreciation of the local currency.

“Owing to factors including the 4.44% decrease in prices of 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; the Institute for Energy Security (IES) projects prices of fuel on the domestic market going down as we enter the second half of November 2020,” the energy think tank said in a statement.

A litre of diesel is currently sold for GHS4.80 pesewas on the average while petrol is GHS5.00.

For the last pricing window, “Zen Petroleum, Benab Oil, Goodness Energy, SO Energy and Alinco Oil sold the least-priced Gasoline and Gasoil on the local market,” the statement said.

“Prices of fuel on the local market remained stable within the window under review. Prices of petroleum products within the first pricing-window of November 2020 saw 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 GHS4.60,” IES added.

Global performance of crude oil prices
According to the IES, 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, 30th October,” the statement said.

IES concluded that, “The US elections also had marginal influence on prices of Brent Crude as they rose to US$41.23 per barrel on 4th 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 9th November and closing the window at US$43.80 per barrel on 11th 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,” it added.

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