Tuesday, 28 June 2016

IES PREDICTS A 2% DROP IN FUEL PRICE



    The Institute for Energy Security (IES) has projected a fall in prices of petroleum products from June 16 onwards between 1.7% and 2%.
    “The petroleum department of the Institute has considered the global trading trends of petroleum price since the last window and can project fuel price to drop on the Ghanaian market in the coming days,” IES said in a release.
     IES says the two major variables that drive petroleum prices on the local market – forex and world crude/Platt oil prices – all point to a fall in the price of the commodity in Ghana.
“IES can confirm that the world crude oil prices have fallen by more than 1.48% within the first pricing window.
      “A review of Platt price, an industry trading benchmark as of today also indicates a drop in Petrol price by 1.8% with an accumulated price of 2.6% decrease within this window, whilst the Ghanaian Cedi has seen stability at the Forex market over the pricing window,” said the release by the energy think tank.
The Institute further notes that the country’s current fuel stock (Petrol and Diesel) is over 285,000 metric tons which serves as a huge motivation to the supply chain of the domestic market.
      “Additionally, crude oil production is ramping up in the supply regions, while the economies of consuming regions like Asia and Europe are weakened suggesting a drop in demand of oil,” IES said.
IES strongly suggests that there will be no justification for an increment in fuel prices on the local market within the next pricing window for June (June 16 onwards), urging that all Oil Marketing Companies be guided by the fundamentals for price setting.

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