IES Predicts Fuel Price Hike for July, Ghana

BY YESMAN ANTOH-

NEW AFRICA BUSINESS NEWS, Accra, Ghana- THE INSTITUTE for Energy Security (IES) has predicted possible fuel price hike of 1.5% on the local market.

According to the group, this imminent price increase may be averted by an intervention from the National Petroleum Authority if the regulator decides to trigger the Price Stabilization Mechanism to standardize prices.

In a statement, a research analyst of IES, Mikdad Mohammed said guided by the fundamental indicators of local fuel price changes under de-regulation; rise in price of Gasoline, Gasoil and Brent crude on the international fuel market, the country’s local currency against the U.S. Dollar.

 Local fuel market performance

Mikdad said over the last two weeks, prices of petroleum products at the pumps has remained unchanged.

This, he said was largely due to favorable international market prices while oil marketing companies across the country continued to sell a litre of Gasoline and Gasoil at an average price of GH¢5.15 and GH¢5.17.

IES-Market scan indicates Benab Oil, Pacific Oil, Lucky Oil and Frimps Energy sell the least-priced fuel per litre at the pump.

World oil market prices

The research analyst said oil prices shot up due to OPEC+ production cuts and rising United States-Iran Tensions.

Iran has announced it has exceeded the 3.67% Uranium Enrichment level imposed by the 2015 JCPOA and has gone beyond 4.5%.

Within the period under review, he said average Brent crude price rose by 1.37% from an average price of $64.09 per barrel in the last window, Brent crude currently trades at $64.97 per barrel.

According to Standard and Poor’s Global Platts benchmark for Gasoline and Gasoil, prices of both products recorded increases on the international fuel market. Gasoline closed trading at $654.68 per metric tonne from a previous price of $613.91, a change of 6.64%. Gasoil saw a price change of 2.41%, from a previous price of $570.09. per metric tonne to close at $654.68 per metric tonne.

Local forex and fuel stock

Data recorded from the foreign exchange market by IES Economic Department suggests a fairly stable local currency, as the Ghana Cedi closed trading at GH¢4.41 to a US Dollar, with a marginal depreciation of 0.94%.

BY YESMAN ANTOH, NEW AFRICA BUSINESS NEWS, BUSINESS & POLITICS, GLOBAL CORRESPONDENT

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