Fuel prices to remain unchanged for 2nd half of May – IES

Over the past two weeks, Santol, Benab Oil, Nick Petroleum, Champion and Cash Oil, joined Zen Petroleum as OMCs spotted by IES Market-scan as trading with the least-rates for Gasoline and Gasoil within the downstream oil market.

Brent crude price remained largely above the $25 per barrel mark for the Pricing-window under assessment. Over the period, Brent Oil hit $30 a barrel for the first time since April 15. This positive gain can be attributed to the easing of restrictions in economic activities around the world, as well as reaction to the start of production cuts. Following this, Brent crude appreciated by 5.31% from $25.98 per barrel recorded at the end of the second Pricing-window of April to close at $27.36 per barrel on average terms at end of the first Pricing-window in May 2020.

S&P’s Platts benchmark for fuels shows average Gasoline price gained 17.96% to close at $202.85 per metric tonne, from a previous average of $171.97 per metric tonne. Meanwhile Gasoil declined by 8.14% to close trading at $215.88 per metric tonne, from a previous average of $235.00 per metric tonne.

Data collated by IES Economic Desk from the Foreign Exchange (Forex) market shows the Cedi depreciated by 0.89% against the U.S. Dollar; the major trading currency for oil. The Cedi traded at an average price of Gh¢5.68 to the Dollar over the period, a departure from the Gh¢5.63 recorded in the second Pricing-window of April, 2020.

Going by the 5.31% and 17.96% appreciation in prices of Crude oil and Gasoline respectively, and the fact that Gasoil tumbled by 8.14% on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the local market remaining largely unchanged in the second Pricing-window of May, 2020. The expected stability in prices of fuels at the pump, takes into account the local currency’s marginal depreciation against the U.S. Dollar.

Over the past two weeks, Santol, Benab Oil, Nick Petroleum, Champion and Cash Oil, joined Zen Petroleum as OMCs spotted by IES Market-scan as trading with the least-rates for Gasoline and Gasoil within the downstream oil market.

Brent crude price remained largely above the $25 per barrel mark for the Pricing-window under assessment. Over the period, Brent Oil hit $30 a barrel for the first time since April 15. This positive gain can be attributed to the easing of restrictions in economic activities around the world, as well as reaction to the start of production cuts. Following this, Brent crude appreciated by 5.31% from $25.98 per barrel recorded at the end of the second Pricing-window of April to close at $27.36 per barrel on average terms at end of the first Pricing-window in May 2020.

S&P’s Platts benchmark for fuels shows average Gasoline price gained 17.96% to close at $202.85 per metric tonne, from a previous average of $171.97 per metric tonne. Meanwhile Gasoil declined by 8.14% to close trading at $215.88 per metric tonne, from a previous average of $235.00 per metric tonne.

Data collated by IES Economic Desk from the Foreign Exchange (Forex) market shows the Cedi depreciated by 0.89% against the U.S. Dollar; the major trading currency for oil. The Cedi traded at an average price of Gh¢5.68 to the Dollar over the period, a departure from the Gh¢5.63 recorded in the second Pricing-window of April, 2020.

Going by the 5.31% and 17.96% appreciation in prices of Crude oil and Gasoline respectively, and the fact that Gasoil tumbled by 8.14% on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the local market remaining largely unchanged in the second Pricing-window of May, 2020. The expected stability in prices of fuels at the pump, takes into account the local currency’s marginal depreciation against the U.S. Dollar.