Fuel prices to remain stable – IES

The Institute for Energy Security (IES) has said that prices will remain stable for the first fuel pricing-window for the last month of the year, beginning December 1.

The institute’s assessment takes into consideration “the relative stable prices of crude oil and gasoil on the international market, as well as the over 2% decrease in the price of gasoline”.

IES, however, indicated that: “The continuous depreciation of the Ghana cedi to the US dollar in the last few days may have an adverse effect on the selling price of fuel within the first pricing-window of December 2017”.

Presenting a review of the second fuel pricing-window for the month of November, 2017, IES Principal Research Officer, Richmond Rockson said: “Fuel prices on the local market recorded the second highest average price” with average gasoline price per litre at GHS 4.46, while gasoil traded at GHS 4.45 per litre.

“A gallon of gasoline and gasoil currently sells at GHS 20.16 and GHS 20.03, respectively on average terms. Prices at the pump for the period under review recorded average increment of 3.7% for gasoline and 5.7% for gasoil, well within the institute’s projection of an increase of between 3 to 6 per cent.

“With Zen Petroleum selling gasoline and gasoil at GHS 4.391 and GHS 4.371 per litre, respectively, their pricing make them the Oil Marketing Company (OMC) selling the most affordable fuels at the pump; followed by Cash Oil and Lucky Oil.

The 3 biggest OMCs, namely: Goil, Shell (Vivo Energy) and Total, joined few other OMCs to sell the most expensive fuels on the market at a price of GHS 4.49 per litre for both gasoline and gasoil,” the statement added.

World Oil Market Prices

Crude oil prices continue to remain above the $60-dollar margin for two consecutive windows ahead of OPEC’s planned meeting to extend the cut in production in 2018. Brent Crude rose marginally from $62.16 per barrel to close at $62.63 per barrel; thus recording a change of 0.76 per cent.

According to Standard and Poor’s Global Platts benchmark for fuels, gasoline prices dropped by 2.90% to close at $604.65 per metric tonne, from a previous average of $622.68 per metric tonne, while gasoil increased marginally by 0.71% to close trading at $560.73 per metric tonne.

Local Forex and Fuel Stock

Data collated by IES’ Economic Desk from the foreign exchange market shows a sharp depreciation of the Ghanaian cedi to major currencies. The cedi traded at an average price of GHS 4.48 to a US dollar over the period under review, from a rate of GHS 4.41 recorded in the first-window of November 2017.

Between November 15 and 28, the quantity of gasoline and gasoil imported into the country was approximately 78,875 metric tonnes; 36,000 metric tonnes for gasoline and 42,875 metric tonnes for gasoil.