The Institute of Energy Security (IES) has predicted a two to three percent increase in fuel prices in the coming days. This is for the first pricing window for January 2021.

According to a statement from the Institute, this price increase can be attributed to the “5.03% increase in price of International Benchmark- Brent Crude, the 8.44% increase in price of Gasoline and the 6.96% increase in Gasoil price”.

“The previous pricing window in December 2020 saw majority of Oil Marketing Companies increasing prices of Gasoline and Gasoil at the pump,” the statement added.

This led to the current national average price of fuel per litre at the pump standing at GH?4.79.

Impact of the world oil market on Ghana’s fuel price
The IES statement further explained that Brent crude price within the period increased by 5.03% in average price with the commodity being sold at $51.06 per barrel mark from the previous window’s average price of $48.82 per barrel mark.

“The commodity continued its rise in price since April 2020. The increase in the average price of the commodity over the period is attributable to the vaccinations that begun within the period against the COVID-19,” it added.

The approval of a stimulus package in USA within the period also affected the price of crude, causing it to rise over the period.

Cedi stability
A research analyst at the IES, Fritz Moses, explained to Citi Business News how the cedi stability has also affected the fuel price.

He said, “At the local level, we are seeing the Ghana cedi maintaining its stability against the US dollars, as it is still trading at GH¢5.79. Because the cedi hasn’t really performed well, it hasn’t been able to affect the prices [of fuel] locally. So just as the prices have been internationally, you’ll see it trickle down and increase the fuel price at the local level.