Fuel prices are expected to drop by three to five per cent in December, the Institute for Energy Security (IES) has predicted.
The Energy Think Tank had earlier projected that petrol price would hit GHS7.0 per litre by end of the year, anticipating an increase in demand in the winter, coupled with low global supply would trigger an increment.
However, IES has argued that the outbreak of the new Omicron variant of COVID-19 had led to a decrease in demand in Europe, leading to a decline in fuel prices on the global market.
“We initially projected an increment because even the opening of strategic oil reserves by the US Alliance failed to bring oil costs down as expected.
“But we are seeing a drop in oil prices, and that is a result of the new variant of the coronavirus. If the trend continues, then we project prices to drop by three to five per cent in December,” Mr Fritz Moses, a Research Analyst at the IES said.
As at Tuesday morning, Brent crude was selling at US$71.20 while West Texas Intermediate (WTI) US$68.14