Fuel prices to remain unchanged till end of month - IES

Prices of petroleum products on the local market will remain largely unchanged for the second pricing window beginning 16 April 2020, the Institute for Energy Security has forecast.

“Taking into consideration the relatively modest reduction in the prices of petrol and diesel on the international market, as well as the 2.29% marginal reduction in the price of International Benchmark – Brent Crude; the Institute for Energy Security (IES) foresees prices of fuel on the local market remaining largely stable”.

However, “competition between Oil Marketing Companies (OMCs) to control and gain more market shares may result in the selling price of fuel falling marginally within the second pricing-window of April 2020”, it said in a statement.

It said data collated by its Economic Desk from the Foreign Exchange market shows the cedi depreciated by 0.72% against the U.S. dollar, trading at an average price of GHS5.63 to the U.S. dollar over the period under review; from a previous rate of GHS5.59 recorded in the second pricing-window of March 2020.

At the same time, crude oil prices remain largely around the US$30-margin for this window.

Prices moved above the US$30-margin from April 3, as the market reacted positively toward the scheduled OPEC+ meeting as well as US President Donald Trump’s remark that he had brokered a deal to end the oil price war.

Meanwhile, during the last pricing-window, fuel prices at the pump experienced reduction across some major OMCs including Shell, Goil, Total Ghana, Puma and Zen Petroleum.

Goil, Zen Petroleum, Puma and Total Ghana shaved off some pesewas to sell at an average price of GHS4.19 for petrol and diesel. Shell, on the other hand, gave away a whopping 16% for Gasoline and Gasoil to sell at GH¢4.29 per litre. Shell Ghana was the OMC with the largest percentage reduction.

However, the second pricing-window of February 2020 saw some OMCs maintaining their prices at the pump to record a national average price of GH¢4.14 for petrol and diesel.

Within the period under review, Zen Petroleum, Benab Oil, Nick Petroleum, Frimps, Champion and Cash Oil, joined Santol as the OMCs that sold the least-priced Gasoline and Gasoil on the local market relative to others in the industry as found by IES market scan.