No significant drop in petroleum prices next month – IES predicts

The Institute of Energy Security(IES) is ruling out any significant drop in petroleum prices in the next pricing window.

The assertion follows some statements made by the Chief Executive Officer of the National Petroleum Authority, Hassan Tampuli that Ghanaians will soon experience a reduction in fuel prices at the pumps.

Mr. Tampuli premised his assertion on the reduction of world crude prices as well as the relative stability of the cedi against the dollar. There is more in this news desk report.

But reacting to the issue, the Executive Director of the IES, Kwasi Anamuah Sakyi explained that the drop in prices in the next pricing window may be less than the recent increases.

He maintained that even though prices of crude oil are going down, its impact on prices at the pumps may be minimal since the petroleum price buildup include different factors.

“Looking at the margin of fall in the international oil prices as well as fuel prices. It is enough justification to see a reduction on our local front, however, the margin of reduction is not going to be much as compared to the last two windows coupled together”.

“You understand that over the last two windows, we have had increment of more than seven percent. But this reduction will be less than five percent. There must be some form of reduction but it won’t be significant. We will still be beyond the region of five cedis per gallon in our local front,” he added.

Mr. Sakyi stated that it is important to manage the expectations of consumers to avert any disappointment.

Background

On Monday October 22nd, Fuel prices in the country went up again, the second time in barely two months.

Both petrol and diesel shot up by about 2.76 percent. This was after an earlier one which went up by 5 percent.

The price of petrol and diesel are currently pegged at GH¢5.21 per litre, up from the previous price of GH¢5.07 per litre despite a reduction in the price of crude oil in the international market.

But the Chief Executive of the NPA Hassan Tampuli assured that fuel prices will see a drop very soon due to the decline in crude oil prices and the stability of the local currency.

For now, motorists and the general public will have no option but wait and see if the assurances given by the NPA will materialize.

Source: citibusinessnews.com