The price of fuel at the pumps is to go up marginally due to an increase in the price of crude oil on the world market.

According to the Institute for Energy Security (IES), oil marketing companies (OMCs) may increase prices at the pump to compensate for the substantial increases in prices on the international market.

“Taking into consideration the 2% increase in the prices of crude oil, coupled with the 0.95% and 1.01% marginal increase in the prices of gasoil and gasoline, respectively on the international market, the Institute for Energy Security (IES) foresees prices of fuel on the local market losing stability”, the think tank said in a statement.

Class Business’ checks at the pumps indicate that the OMCsare yet to effect any price changes.

The rate of increase hovers between 0.5 and 3.0%.

Local forex

The IES said data collated by its economic desk from the foreign exchange market show the cedi made some very marginal gains (0.5%) against the US dollar within the first two weeks of January.

The cedi traded at an average price of GHS5.62 to the US dollar over the period under review, from a rate of GHS5.65 recorded in the last window of December 2019.

World market prices

Crude oil prices continue to remain above the $60-dollar margin from the beginning of the year.

Escalation of tensions between the United States and Iran saw Brent Crude gaining 6% to reach $70.24 per barrel – the first time prices have hit that high in more than six months.

Oil prices tumbled as President Donald Trump signaled tensions with Iran eased.

Over the last two weeks, Brent crude rose marginally from $65.43 per barrel to close at $66.74 per barrel on average terms.

During the last pricing window review, prices of petroleum products on the local market remained unchanged.

The expected marginal increases in local fuel prices was averted with the application of the Price Stabilisation and Recovery Levy (PSRL) by the National Petroleum Authority (NPA).

As a result, the national average price of fuel per litre at the pumps is still pegged at GHS5.36 for both gasoline and gasoil. 

Zen Petroleum, Benab Oil, Pacific, SO Energy and Alinco Oil sold the least-priced petrol and diesel on the local market, according to the IES market-scan.