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Fuel prices to shot up – IES

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The Institute of Energy Security (IES) has predicted an increase in fuel prices in the second-pricing window of April 2019.

“Considering the fact that average Brent crude price has gone up by 3.98% with a corresponding 12.97% increment in the price of Gasoline and 1.42% for Gasoil on the International market, the IES foresees a slight increment in the price of fuel on the market,” IES Research Analyst, Mikdad Mohammed, said in a statement.

The institute noted that the price hike will occur “irrespective of the 2.5% appreciation of the Ghana Cedi against the dollar” under the period of review which covers the first pricing window of April 2019.

It, however, noted that while some Oil Marketing Companies (OMCs) could keep prices unchanged in order to maintain market share as part of the deregulation policy, most OMCs are likely to take advantage of the window to make up for previous depressed margins.

On the local fuel market performance within the first pricing window in April, the IES said some OMCs reviewed their prices downwards to maintain market shares, while largely, prices stayed unchanged.

Per the institute’s market scan, Gas oil and Gasoline continue to be sold on average terms at GHS5.12 and GHS5.15, respectively. Star Oil, Pacific Oil, and Benab Oil sell the least-priced fuel on the market relative to other OMCs. Fuel from these outlets are 3% lower than the national average fuel price.