Consumers of petroleum products should be paying slightly higher prices for the fuel they purchase at the country’s various pumps for the next two weeks which is the first pricing window for February, 2021.
According to an analysis by the Institute of Energy Security, IES, the increase can be attributed to the 3.9% increase in the price of Brent crude, the 5.10% increase in the price of Gasoil, and the relative stability of the local currency.
A statement issued by the IES also noted that some Oil Marketing Companies, OMCs, may however decide to maintain prices from the previous window.
“Owing to factors including the 3.9% increase in price of the International Benchmark- Brent crude, the 5.10% increase in price of Gasoil, the 7.47% increase in Gasoline price and the relative stability of the local currency; the Institute for Energy Security (IES) projects price of fuel on the domestic market at the various pumps experiencing slight adjustments upwards as we enter the new month, February 2021. To increase market share however, some OMCs may decide to maintain prices from the previous window,” the IES said in a statement.
Local Fuel Market
For the pricing-window under review, “Price of fuel on the local market remained unstable within the window under review. Price of petroleum products within the second Pricing-window of January 2021 saw majority of Oil Marketing Companies (OMCs) increasing their figures marginally. The current national average price of fuel per litre at the pump is pegged at Gh¢4.97,” the statement noted.
It futher noted that, “Zen Petroleum, Benab Oil, Petrosol and Frimps Oil sold the least-priced fuel on the local market according to IES Market-Scan.”
World Oil Market
On the world oil market, the IES states that, Brent crude price averaged about $55.75 per barrel mark representing a 5.1o% increase from the previous window’s average price of $53.06 per barrel mark.
The Brent crude price increase has been slower than expected due to the return to lockdowns and new restrictions in parts of Asia, particularly China. Also, the same situation in UK, France and other parts of Europe have contributed to the current trajectory of the price.
The price reduction to $54.75 on 18th January was in response to the rise in the Coronavirus infections and slow rollout of the COVID-19 vaccines across the world. The potential delay in the next round of stimulus checks in the USA has also been a factor. Lastly, the grim outlook of the International Energy Agency (IEA) on oil demand that was released within the period affected price of the International benchmark.
Even though prices seem to reduce, they are still higher than the prices that were recorded in the previous window hence the increase in the average price for the window under review.
It further noted that, Gasoline and Gasoil prices as monitored on Standard and Poor’s global Platts platform shows that price of the international commodities Gasoline and Gasoil experienced marginal increments.
“Gasoline saw an increase in price by 7.4% to close the window at $502.50 per metric tonne from an earlier $467.53 per metric tonne. Gasoil price also increased by 4.99% to close trading at $454.00 per metric tonne from $431.31 at the end of the first pricing window of January 2021,” it added.
