IES projects 10% and 8% fall in price of petrol and diesel starting Dec. 1

The Institute for Energy Security (IES) has projected a 10% and 8% decline in the pump price of petrol and diesel starting December 1, 2022.

The projected decline in the pump price of petrol and diesel is on the back of a decrease in the international price of gasoline (petrol) and gasoil (diesel).

According to the IES, international price of petrol and diesel in the last pricing window by 13.45% and 11.63% respectively.

On the back of the decrease in international price for petrol and diesel, the IES anticipates a GHS 1.63 and GHS 1.58 reduction in the pump prices of petrol and diesel from the national average price of GHS 16.31 and GHS 19.58 respectively.

“Prices of the various finished products will be affected by the 13.45% fall in the price of gasoline, the 11.63% fall in the price of Gasoil, and the 1.88% fall in the price of LPG.

“However, the 3.09% depreciation of the Cedi against the US Dollar is expected to erode portions of the gains from the reductions in international fuel prices. The price of LPG is however expected to remain stable on account of the Cedi’s depreciation.

“As a result, the Institute for Energy Security (IES) foresees a fall of between 10% and 8% in the prices of Gasoline and Gasoil in the next pricing window,” IES noted.

World Oil Market

International Crude oil benchmark Brent saw a 6.31% decrease in price over the previous window’s average price of $95.11 per barrel to the present average price of $89.11 per barrel.

As fresh worries surrounding China roiled global markets on Monday, oil prices fell to their lowest levels in 11 months.

The international benchmark Brent Crude price fell 41% from the $139 per barrel price peak attained in March following Russia’s invasion of Ukraine, falling to $82 on November 28, 2022, its lowest level since January 6, 2022.

The strict zero-Covid policy that China, the largest oil importer in the world, is still enforcing has sparked new worries about the demand for oil. As a result, Brent fell by almost 15% in November, and despite the sporadic appearance of protests across the country, the Chinese government maintains its firm stance on its stringent pandemic policies.

World Fuel Market

Global Standard & Poor’s (S&P’s) Platts averages monitored over the last Pricing-window indicates that the price of Gasoline fell by 13.45% from $969.08 per metric tonne to $838.78 per metric tonne. Gasoil also saw an 11.63% drop in price from $1097.35 per metric tonne to $969.70 per metric tonne. LPG price also fell marginally by 1.88% from $630.06 per metric tonne to $618.20 per metric tonne.

Local Forex

Data from the IES Economic Desk as captured from the foreign exchange (Forex) market over the last two weeks, shows the local currency saw a 3.09% depreciation against the US Dollar from the previous rate of Gh¢14.49, to a current rate of Gh¢14.96 to the US Dollar.

Source: norvanreports.com