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Fuel prices to go up 3% – 5% – IES predicts

Fuel prices to go up 3% – 5% – IES predicts

The Institute for Energy Security, IES, is predicting a 3% – 5% increase in petrol and diesel prices at the pumps within the first 2 weeks of December, which makes up the first pricing window of the month.

The energy think tank attributes the expected jump in fuel prices to a number of factors including optimism around the development of effective COVID-19 vaccines, a loosening of restrictions in parts of Europe as well as the hopes of an extension of the period for production cuts by OPEC-plus countries to at least the first quarter of 2021.

The price of fuel at the pumps is likely to go up on the domestic market in the month of December 2020, the Institute for Energy Security (IES) has sad. In its review of the November pricing window, the IES noted that: “Prices of fuel on the local market remained stable” while “prices of petroleum products within the second pricing window of November 2020, saw the majority of Oil Marketing Companies (OMCs) maintaining prices of gasoline and gasoil.

The current national average price of fuel per liter at the pump is pegged at GHS 4.61. Also, it said data collated by its Economic Desk from the foreign exchange (Forex) market “shows the cedi maintained its stability against the U.S. dollar, still trading at an average price of 5.76 to the dollar over the period.”

Fuel prices to go up 3% – 5% – IES predicts

“Due to the 11.5% increase in prices of International Benchmark – Brent crude, the 6.94% increase in the prices of gasoline, the 7.26% increase in gasoline prices and the stability of the local currency”, the IES also “projects prices of fuel on the domestic market experiencing a sharp increase” in the month of December 2020. The above development has pushed Brent crude oil price to around $ 48 dollars, its highest level since March this year.

“Over the last 2 weeks, we have seen prices of Brent crude rising on the international market as a result of the developments around the vaccine, the US elections as well as expected production cuts by OPEC+ countries.”

Apply petroleum stabilization levy to ensure transport fares remain stable.

The Institute for Energy Security, IES, says it doesn’t expect the 3 – 5 % increase in fuel prices it’s predicting at the pumps in the first pricing window of December, to lead to an increase in transport fares. The energy think tank says the expected jump in fuel prices can be attributed to a number of factors including optimism around the development of effective COVID-19 vaccines, a loosening of restrictions in parts of Europe as well as the hopes of an extension of the period for production cuts by OPEC-plus countries to at least the first quarter of 2021.

BY: Naa Anyema Collison

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