The Institute for Energy Security (IES) has predicted a reduction in fuel prices at the pumps in the second fuel pricing window beginning June 16.

Principal Research Analyst Richmond Rockson explained on Thursday June 15 that the forecast was based on consideration of the market indicators “like the Brent crude price which has dropped by over 7%, the drop in global prices of gasoline and gasoil by about 4% and 7% respectively, the depreciation of the Ghana cedi by over 1%, coupled with competition among the various Oil Marketing Companies (OMCs)”.

He revealed that some major OMCs had started reducing prices and it is expected that the others, especially the relatively small OMCs, will follow suit.

Explaining the performance on the market during the first pricing window, Mr Rockson said prices were projected by IES to rise to up to 4 per cent based on global oil market fundamentals.

According to him, “Puma Energy was the first OMC to adjust prices upward but quickly had to backtrack due to stiff competition, one of the benefits of the downstream deregulation policy introduced in June 2016”.

Whereas most OMCs maintained prices from the previous pricing-window, OMCs including Goil, Shell, AP Oil, and Total adjusted prices downward at the tail end of the window for the market to record an average price drop of 0.51%.

IES MarketScan reveals that Frimps Oil, AP Oil, and Puma Energy are selling the cheapest gasoline and gasoil on the local fuel market. The average price per litre of gasoline and gasoil is GHS3.87 and GHS3.85 at the close on the first pricing-window.