The Institute for Energy Security (IES) is forecasting a drop in the prices of fuel on the local market by about 3% in the second pricing window of February.
The possible reduction in prices of fuel follows a significant fall in the value of the US dollar, which IES says makes the case for fuel price reductions at the pump stronger.
Equally, the price of Brent crude has declined significantly by 12.16%, coupled with the 10.58% and 8.66% considerable reduction in the prices of Gasoil and Gasoline, respectively on the international market.
Presently, the price of Brent crude is going for US$57.31 per barrel.
IES said market fears and weak oil demand have precipitated a continued oil price slide with the Brent crude benchmark falling on Monday (10 February 2020) to lows as $53.27 not seen since the end of 2018.
According to IES, the major contributory factor for the free fall of Brent crude prices is the impact of the Novel Coronavirus.
Other factors that has triggered the drop in prices of fuel include hot winter and planned maintenance.
The hydrocarbon industry relies on cold weather across the northern hemisphere to drive demand for oil and gas to heat homes and workplaces in the world’s most advanced economies.
Also, most oil industry giants announced way before the Coronavirus about their planned maintenance.
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Meanwhile, fuel prices that experienced price reduction at some Oil Marketing Companies (OMCs) pump stations include Shell Ghana in the pricing window under review as predicted by the IES.
However, the first pricing-window of February 2020 saw the majority of OMCs maintaining their prices at the pump to record a national average price of GHS5.48 and GHS5.46 for Gasoil and Gasoline, respectively.
