Cost of fuel to go down in November – IES predicts

The fall in price is to the drop in prices of International Benchmark- Brent Crude

Energy think tank, Institute of Energy Security (IES) has predicted that the cost of fuel will go down in November.

IES, in a statement, said this is due to the drop 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.

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.

“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.