Prices for petrol and diesel have been predicted to experience between 3 and 5 per cent increment within the first pricing window of December – first 2 weeks of December.
The prediction is according to energy think tank, the Institute for Energy Security (IES).
IES attributes the expected jump in fuel prices to factors such as the optimism surrounding 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 have pushed Brent crude oil price to around $48 dollars, its highest level since March this year.
“Over the last 2 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,” said Fritz Moses, a research analyst with IES.
“On the impact at the pumps in Ghana, we hope prices per our projections do not go beyond Ghs 4.80 per liter for petrol and diesel for the top three OMC’s in Ghana, that is Goil, Total and Shell,” he added.
Despite the expected increment in fuel prices, the IES notes that it does not expect the increase to lead to an increase in transport fares as it expects the government to be ready to apply the price stabilization levy to avert any possible increase in transport fares.
