Home Business Local fuel prices to go up; IES projects

Local fuel prices to go up; IES projects

The second pricing window for May 2017 saw all Oil Marketing Companies (OMCs) reviewing pricing at the pump downwards by an average of 1.39% and 2.16% for Gasoline and Gas oil respectively as projected by Institute for Energy Security.

The institute’s MarketScan indicates that the selling average price per litre for Gasoline and Gasoil is GHS3.89 and GHS3.86 respectively.

Currently, Star Oil sells the cheapest Gasoline at Ghs3.799 whilst Frimps Oil, Glory Oil, Pacific and Puma Energy are selling the cheapest gas oil on the local fuel market.

World Oil Market Prices Indices

Benchmark Brent crude price rebounded within the last 15 days rising from an average figure of $50.17 per barrel to $53 per barrel, with the announcement of OPEC extending production cuts of 1.8 million barrels per day for another nine months up to June 2018.

Figures published by Standard & Poor’s Platts for Gasoline and Gasoil on the international market suggests an increment within the period under review. Global Gasoline prices rose from $510.28 per metric tonne to $544.00 per metric tonne, a percentage change of 6.6.

And in a similar fashion, Gasoil price rose from $432.60 per metric tonne to 458.27 per metric tonne; a change of 5.93%.

Local Forex and Fuel Stock Per data gathered from the banking industry in the last two weeks, the U.S. Dollar traded stronger against the Ghanaian Cedi.

The Cedi closed at an average of Ghs4.27 per dollar from an opening of Ghs4.22, representing a depreciation of 1.18%.

At the close of the window, the stock of fuels held in tanks across the various terminals rose slightly above the previous figures, and that the combined stock of Gasoline and Gasoil can meet four weeks on national demand.

Projections for June 2017 first pricing-window 

Based on the depreciation of the Ghanaian Cedi by 1.18%, crude oil average price increase of $2.83 per barrel, Gasoline and Gasoil prices increasing by $33.72 per tonne and $25.67 per tonne respectively; consumers should expect higher prices at the pump in the first Pricing-window for June 2017.

The Institute for Energy Security (IES) foresees the impending increment likely to erode the gains made by consumers over the past four weeks at the pump.

However, it would count as a relief for both Bulk Oil Distributors (BDCs) and Oil Marketing Companies (OMCs).