Diesel Prices Expected To Decline In The Second Half Of April, According To IES.

According to the Institute for Energy Security (IES), the price of gasoil (diesel) at the pump on the domestic market will decline in the second half of April 2021. Petrol rates, on the other hand, are forecast to remain unchanged, according to the institute.

This was predicted in the second half of the month’s forecast.

The IES clarified the following while reviewing the pricing window in the first half of April:

Local Fuel Market Performance

During the time period under consideration, the price of gasoline on the local market remained constant.
The Oil Marketing Companies (OMCs) maintained rates at the pump during the first pricing window, which ran from April 2021 to April 2022.
Because of the price stability, the new national average price of fuel per litre at the pump for both goods is still GH5.16.

According to IES Market-Scan, Zen Petroleum, Benab Oil, Petrosol, and Frimps Oil sold the cheapest fuel on the local market during this pricing window.

World Oil Market

The average price of international benchmark Brent crude for the window under consideration was $63.65 per barrel, down 2.40 percent from the previous window’s average price of $65.22 per barrel.

During this time, the Brent Crude price witnessed the normal market uncertainty.
The news of a potential prolonged pause in the reopening of the Suez Canal after it was blocked by the Ever Given vessel caused prices to increase.
When the canal was reopened a few days after the blockage, prices began to fall, putting an end to the anticipated weeks-long wait.

The decision by OPEC+ to reduce supply cuts in the hopes of tightening the market, resulting in an estimated addition of 2 million barrels per day between May and July, boosted market prices as traders anticipated a rise in demand for oil products.

Prices fell only a few days later as prolonged market closures in Canada’s Ontario province, India’s largest city, Mumbai, and a call for tighter restrictions in Tokyo, Japan challenged demand expectations.
The hope for a tightening oil market was dashed by these new restrictions.

Prices of gasoline and gasoil, as tracked by Standard and Poor’s global Platts, show that the international commodities gasoline and gasoil experienced minor price fluctuations during the time.
The price of gasoline increased by 1.83 percent, closing the window at $619.88 per metric tonne, up from $608.73 per metric tonne earlier.
The price of gasoil, on the other hand, fell by 2.65% to close trading at $499.75 per metric tonne, down from $513.35 per metric tonne in the previous window.

Local Forex

The cedi depreciated slightly against the US Dollar, according to data gathered by IES Economic Desk from the Foreign Exchange (Forex) sector, from GH5.73 in the previous window to Gh5.74 in the current window.

PROJECTIONS FOR APRIL 2021 SECOND PRICING WINDOW

The Institute for Energy Security (IES) forecasts that the price of gasoil (diesel) on the domestic market will decrease due to a 2.40 percent drop in the price of Brent crude, a 2.65 percent drop in the price of Gasoil, a 1.83 percent rise in the price of gasoline, and a 0.17 percent depreciation of the local currency against the US Dollar. However, when we move into the second half of April 2021, gasoline (petrol) prices are expected to remain stable.

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