Fuel Prices Could Hit ¢7/Litre By End Of 2021 – IES

Fuel prices may hit GH¢7 per litre (₦472 equivalent) or more by the end of 2021, the Institute for Energy Security (IES) has projected.

Gatekeepers New s reports that a Research Analyst at the IES, Fritz Moses on Monday said Global demand for fuel is expected to increase in the winter and that could trigger a hike in prices globally in the wake of limited supply.

He noted that depreciation of the cedi against the dollar could also be a major catalyst in the projected increment in fuel prices.

“We don’t see prices decreasing anytime soon. With the expected increase in demand on the international market in Europe, Asia and even in Africa, we think it will cause prices to increase.

“The supply from the oil-producing and exporting countries together with Russia, are unwilling to increase their production. They are sticking by their quota, which is releasing about 400,000 barrels per day on the market till April next year,” he said.

Gatekeepers New s reports that a litre of petrol and diesel is currently selling at GH¢6.90 at the pumps.

As of November 19, 2021, the price of West Texas Intermediate (WTI) crude oil stood at $75.97 per barrel.

Moses said the IES’ assessment so far showed that the Price Stabilisation and Recovery Levy (PSRL) which was suspended by the Government last month, did not have any significant impact on fuel prices at the pumps.

He said the suspension of the PRSL was not sustainable given that the accumulated increments were more than the 16p/litre cost that the levy accounted for.

“Largely, the rise in crude prices on the international market is not that substantial as the cedi depreciation. In some instances, when the prices are going up on the international market and the cedi is stable, the market BDCs and OMCs are able to maintain their prices,” Mr Moses said.

He advised the Government to adopt sustainable measures by revamping the Tema Oil Refinery to boost local production capacity and to reduce dependency on the international market.