The Institute for Energy Security (IES) has predicted an increase in the prices of fuel starting Monday, June 1, 2020.
This is as a result of the surge in oil prices in the international market.
According to Energy Analyst at IES, Raymond Nuworkpor, the last window prices on the international market went up marginally and it’s partly due to the easing of restrictions on some developed countries.
He explained that due to the ease of restriction on movement, demand for crude oil products has increased tremendously which has shot up the prices in the current window.
“We see prices going up starting from Monday when the new window starts effectively. As at now, prices on the international market are hovering around the 35 margin which before this current window prices were even below 20 at a point in time.”
He continued, “We also know that some of the major world economies are easing restrictions; talk about India, Suadi Arabia, UK, US, China, they are easing restrictions so there is a demand for crude products like diesel and gas oil and even jet fuel. These are all increasing demand for crude products therefore prices are going up on the international market. These are the major reasons why we are seeing a rising prices in the next window which will start effectively on Monday.”
Oil Marketing Companies (OMCs) in the last window were unable to increase prices because they got the fuel at a very reduced price but since there has been a change in the new window, OMCs are likely to adjust pump prices to reflect the changes on the international scene.
This may result in an increment in transport fares and food products in the country.