Fuel prices to go up between 3-5 percent – IES predicts

The Institute for Energy Security, IES, is predicting a 3–5 percent increase in both petrol and diesel prices at the pumps within the first 2 weeks of December, which makes up the first pricing window of the month.

The energy think tank attributes the expected jump in fuel prices to a number of factors including optimism around the development of effective COVID-19 vaccines, a loosening of restrictions in parts of Europe as well as the hopes of an extension of the period for production cuts by OPEC-plus countries to at least the first quarter of 2021.

The above development has pushed Brent crude oil price to around $ 48 dollars, its highest level since March this year.

Fritz Moses is a research analyst with IES and he has been speaking to Citi Business News on their analysis on fuel prices for the next two weeks.

“Over the last two weeks we have seen prices of Brent crude rising on the international market as a result of the developments around the vaccine, the US elections as well as expected production cuts by OPEC+ countries.”

“On the impact at the pumps in Ghana, we hope prices per our projections do not go beyond GH¢ 4.80 per liter for petrol and diesel for the top three OMC’s in Ghana, that is Goil, Total and Shell,” he added.

Apply petroleum stabilisation levy to ensure transport fares remain stable

The Institute for Energy Security, IES, says it doesn’t expect the 3 – 5 per cent increase in fuel prices it’s predicting at the pumps in the first pricing window of December, to lead to an increase in transport fares.

The energy think tank says the expected jump in fuel prices can be attributes to a number of factors including optimism around the development of effective COVID-19 vaccines, a loosening of restrictions in parts of Europe as well as the hopes of an extension of the period for production cuts by OPEC-plus countries to at least the first quarter of 2021.

Speaking to Citi Business News on the expected increase in the price of petrol and diesel Fritz Moses a research analyst with the IES said government should be ready to apply the price stabilisation levy to avert any possible increase in transport fares.