IES predicts increase in fuel prices this month

Research Analyst at IES, Mikdad Mohammed said the increase will be as a result of the recent increment in the price of crude on the world market and the rate of depreciation of the Ghana cedi as the basis for its forecast.

In an interview with Accra-based Citi FM, Research Analyst at IES, Mikdad Mohammed said the increase will be as a result of the recent increment in the price of crude on the world market and the rate of depreciation of the Ghana cedi as the basis for its forecast.

“When you look at the price of Gasoline and Gasoil on the international market, we have an increment of some 4.58 %, that is for Gasoline (Petrol) and then for Gasoil (Diesel) we have some 2.29 % increment. Now when you put these aside, and we look at the trading currency, specifically the Cedi’s relationship with the dollar, you will realize that when you compare it from the last window to present prices you will realize that we have had a depreciation of some 1.92 %. It is based on these computations that the IES is calling on consumers to expect a 3% increase in prices at the pumps.”

Mikdad Mohammed, however, said that the plight of consumers can be mitigated if the National Petroleum Authority (NPA) activates the Price Stabilization and Recovery Levy mechanism.

IES is not the first to predict the increase in fuel prices for July. The Chamber of Petroleum Consumers-Ghana (COPEC-GH), in May also predicted that fuel prices at various vending points are expected to increase by up to about 3 percent in the first pricing window of June.

It said the prices indicative ex-refinery prices for both petrol and diesel are expected to go up by between 2-3 percent for the first window which began on 1 June 2018.

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