Prices of petroleum products are expected to go up marginally, beginning today, February 1, 2021.

This follows about 5.0% increase in the price of Brent crude in the last two weeks, though the cedi had remained relatively stable to the dollar.

However, the Institute of Energy Securities believes some Oil Marketing Companies may decide to maintain prices from the previous pricing window to increase market share.

According to the Institute of Energy Security, IES, the expected fuel price increase can be attributed to the 3.9% increase in the price of Brent crude, the 5.10% increase in the price of gasoil, and the relative stability of the local currency.

“Owing to factors including the 3.9% increase in price of the International Benchmark- Brent crude, the 5.10% increase in price of Gasoil, the 7.47% increase in Gasoline price and the relative stability of the local currency; the Institute for Energy Security (IES) projects price of fuel on the domestic market at the various pumps experiencing slight adjustments upwards as we enter the new month, February 2021.”

January pricing-window  

Price of fuel on the local market remained unstable within the window under review.

Price of petroleum products within the second pricing-window of January 2021 saw majority of OMCs increasing their figures marginally.

Zen Petroleum, Benab Oil, Petrosol and Frimps Oil sold the least-priced fuel on the local market according to IES Market-Scan.

Price of crude oil

For the window under assessment, Brent crude price averaged about $55.75 per barrel, representing a 5.10% increase from the previous window's average price of $53.06 per barrel.

“The Brent crude price increase has been slower than expected due to the return to lockdowns and new restrictions in parts of Asia, particularly China. Also, the same situation in UK, France and other parts of Europe have contributed to the current trajectory of the price”, the IES mentioned.

It further said “the price reduction to $54.75 on 18th January was in response to the rise in the Coronavirus infections and slow rollout of the COVID-19 vaccines across the world. The potential delay in the next round of stimulus checks in the USA has also been a factor.”

The IES monitoring of gasoline and gasoil prices by Standard and Poor’s global platform shows that the price of the international commodities experienced marginal increments. Gasoline saw an increase in price by 7.4% to close the window at $502.50 per metric tonne from an earlier $467.53 per metric tonne, whiles gasoil price also increased by 4.99% to close trading at $454.00 per metric tonne.

Local Forex

Data collated by IES Economic Desk from the Foreign Exchange market showed that the cedi continues to maintain its stability against the dollar still trading at GH¢5.79.