Energy think tank Institute of Energy Security says competition between oil marketing companies (OMCs) to gain market share will compel them to stabilise the selling prices of fuel at the pump within the first pricing window of September, which runs from the 1st to 15th day of the month.

Though the institute believes that the appreciation in the prices of Brent crude (2.45 percent) and gasoline (6.23 percent), as well as the 0.17 percent depreciation of the local currency against the US dollar, should have brought a marginal increase in the prices of fuel on the local market, competition among the OMCs might give a different outcome.

The IES said fuel prices on the local market remained stable in the pricing window of August, with majority of the OMCs maintaining the prices of gasoline and gasoil during the second pricing window of the same month.

“The current national average price of fuel per litre at the pump is pegged at GH¢4.80 for both gasoline and gasoil. Over the past two weeks, Santol, Benab Oil, Nick Petroleum, Radiance, Champion and Cash oil joined Zen Petroleum as OMCs spotted by IES’ market scanner as trading with the least rates for gasoline and gasoil within the downstream oil market,” the energy analysts said.

The global oil sector was hard hit by the pandemic situation as oil prices crashed on the international market. While this was terrible news for exporters, consumers in importing countries have, on the other hand, been enjoying lower prices at the pumps.

Analysts have said they foresee global oil prices remaining depressed in the near term despite recent gains. Rating agency Moody’s said it expects prices to remain lower for longer, which will worsen pressures for oil exporters.

However, the market price has begun to appreciate in the last few months as Brent crude price remained above the US$44 per barrel mark in August.

The surge in the price of Brent, according to analysts, can be attributed to the easing of restrictions on economic activities around the world, as well as reaction to the OPEC+ agreed extension to historic production cuts.