Ghanaian energy think tank, Institute for Energy Security (IES) says the prices of petroleum products will drop further this month in the West African country.
A statement released here Tuesday signed by Richmond Rockson, Principal Research Analyst at the Petroleum Unit said its prediction was premised on the international crude oil price fall, the stability of the local currency against the United States Dollar (USD).
“With crude oil price falling by over 5 percent, gasoline and gasoil prices dropping by approximately 8 percent, fuel stocks capable of meeting over 4-weeks of national demand, and the Ghana cedi remaining fairly stable against the U.S. Dollar; consumers can expect to get a break at the fuel pump.
The IES can expect Oil Marketing Companies (OMCs) to reduce their prices further in the second pricing-window,” the statement said.
Some OMCs here including Ghana Oil Company, Shell, Total and a few others kick-started the reductions over the weekend and others are expected to follow.
Benchmark Brent crude prices have been falling virtually every day for the past 15-days, pushing average Brent crude price from 52.97 USD per barrel to 50.17 USD per barrel.
The Organization of Petroleum Exporting Countries (OPEC’s) production cuts agreed in December 2016 which had pushed oil prices up earlier in the year was not sufficient to keep oil prices high.
Oil production in the United States is increasing again, boosting supply and keeping prices in check.
The international gasoline and gasoil prices published by Platts on last week were 510.28 USD per metric tonne and 432.60 USD per metric tonne respectively.
This suggests a 7.99 percent drop for both fuels. These reductions were influenced by the rise in global stock of gasoline and gasoil.