Fuel Prices To Stay Put In September – IES

• Posted on September 3, 2018
• by Ellsamwise King
• Comment

The Institute of Energy Securities (IES) has projected that prices of fuel at the pumps across the country will remain stable in September.

Prices of fuel at the pumps experienced a 2% increment in August with Gas oil prices averaging GH¢4.85 per Litre increasing to GH¢4.95 Litre. The Current national average prices of both Gasoline and Gasoil at the pump is GH¢4.89 and GH¢4.93 respectively.

In its review of August second pricing-window, IES assured that prices of fuel at the pumps for September will see no changes.

“Despite the rise in the price of Brent crude on the international market, prices of finished products have experienced a slight reduction in the case of Gasoline and a very marginal increment less than 0.2% in the case of Gasoil.

“With the cedi making some gains against the dollar, the Institute projects that prices at the pump will remain relatively stable,” IES stated in a statement dated August 29.

Below is the full statement

FUEL PRICES NOT EXPECTED TO CHANGE

REVIEW OF AUGUST SECOND PRICING-WINDOW

Local Fuel Market Performance

Prices of fuel at the pumps experienced a 2% increment in the window under review. Gasoline and Gasoil average prices of GH¢4.85 per Litre increased to GH¢4.95 Litre during the first weekend of the window. Gasoline and Gasoil prices were later readjusted to GH¢4.90 and GH¢4.94 respectively across all the major Oil Marketing Companies (OMCs). Current national average prices of both Gasoline and Gasoil at the pump is GH¢4.89 and GH¢4.93 respectively. IES Market-scan shows Benab Oil sells the lowest-priced fuel on the market relative to other OMCs; followed by Frimps Oil and Zen Petroleum. Other relatively low-cost fuel can be sourced from Pacific Oil, Lucky Oil and Alinco Oil.

World Oil Market Prices

Brent Crude spot price saw an increment from its previous trading price of $72.81 per barrel to $76.02 per barrel within the window. Average Brent crude however reduced slightly from $73.43 per barrel to $73.03 per barrel. This is explained by the fact that the global crude benchmark hit the $70 price its biggest spot price decline in more than three months. For finished products, Gasoline went down by 0.18% while Gasoil also went up by 0.10% closing trading respectively at $735.18 per metric tonne and $653.55 per metric tonne according to Standard and Poor’s Global Platts analysis.

Local Forex and Fuel Stock

IES economic Desk figures show the cedi has experienced a marginal appreciation against the trading currency, the US dollar. The dollar is going for GH¢4.80 currently as against GH¢4.83 in the last pricing window. Across the various fuel terminals in the country, no gasoil was received over the period. An amount of 43,600 metric tons of gasoline and 6,300 metric tons of LPG was offloaded.

OUR PROJECTIONS FOR SEPTEMBER 2018 FIRST PRICING-WINDOW

Despite the rise in the price of Brent crude on the international market, prices of finished products have experienced a slight reduction in the case of Gasoline and a very marginal increment less than 0.2% in the case of Gasoil. With the cedi making some gains against the dollar, the Institute projects that prices at the pump will remain relatively stable.

Signed: MIKDAD MOHAMMED