Fuel prices to reduce at the pumps – IES

Local fuel prices are expected to fall in July, a principal research analyst in the Petrol Unit at the Institute for Energy Security has projected.

In a statement reviewing the local fuel market performance for the month of June, Richmond Rockson noted that the second Pricing-window saw most Oil Marketing Companies (OMCs) effecting slight drops in prices at the pump for both Gasoline (Petrol) and Gasoil (Diesel)); with the market recording an average drop of 0.77%.

According to the research analyst, the drop recorded on the local fuel market was attributed to relatively favourable prices recorded on the international fuel market as compared to the previous window. The average price at the pump for Gasoline and Gasoil stands at GHC 3.84 per litre and Ghs3.83 per litre respectively.

Statistics at the World Oil market prices indicated that the international markets shows Benchmark Brent crude dropping further from the previous price average of $48.87 per barrel to trade at an average price of $46.53 as a result of over-supply. The fall in price suggest a percentage change of 4.79%.

Cedi performance

The Ghana Cedi, for a fourth consecutive window, depreciated against the U.S. Dollar, opening at GHC4.32 against the U.S. Dollar and closing at an average of GHC4.36, according to figures from the banking sector. This represents a percentage change of 0.93%.

The stock of Gasoline and Gasoil in the country remains unchanged from the previous, and could meet 4-weeks of national demand.

The Institute for Energy Security further stated that there are expectations fuel for prices to drop slightly in this first Pricing-window for the month of July 2017 due to the positive statistics emanating from the sector. They hinted that the international price for both crude oil and refined products have dropped by a decent figure, the Ghana Cedi depreciated marginally, fuel stock level in the country remain high.

IES were however quick to add that with National Petroleum Authority’s revised specifications for Gasoil, Gasoline and Kerosene expected to come into force on 1st July 2017; fuel prices at the pump could see a rise.

Below is the full statement from the Institute for Energy Security

REVIEW OF JUNE 2017 SECOND PRICING-WINDOW Local Fuel Market Performance

The second Pricing-window in the month of June 2017 saw most Oil Marketing Companies (OMCs) effecting slight drops in prices at the pump for both Gasoline (Petrol) and Gasoil (Diesel)); with the market recording an average drop of 0.77%. The drop recorded on the local fuel market was attributed to relatively favourable prices recorded on the international fuel market as compared to the previous window. Today, the average pump price for Gasoline and Gasoil stands at Ghs 3.84 per litre and Ghs3.83 per litre respectively.

IES Market-scan indicates that Frimps Oil sold the cheapest Gasoline and Gasoil on the market at Ghs3.77 per litre. Aside Frimps Oil; Lucky Oil, Puma Energy, and AP Oil are selling the cheapest fuel on the market.

World Oil Market Prices

Reports from the international oil market shows Benchmark Brent crude dropping further from the previous price average of $48.87 per barrel to trade at an average price of $46.53 as a result of over-supply. The fall in price suggest a percentage change of 4.79%.

Standard and Poor’s Platts benchmark indicate that within the period under review, price for Gasoline dropped by 6.16%, from $522.74 per metric tonne to $490.55 per metric tonne, while Gasoil fell by 1.36%, from a previous average of $424 per metric tonne to 418.25 per metric tonne.

Local Forex and Fuel Stock

The Ghana Cedi, for a fourth consecutive window, depreciated against the U.S. Dollar, opening at Ghs4.32 against the U.S. Dollar and closing at an average of Ghs4.36, according to figures from the banking sector. This represents a percentage change of 0.93%.

The stock of Gasoline and Gasoil in the country remains unchanged from the previous, and could meet 4-weeks of national demand.

PROJECTIONS FOR JULY 2017 FIRST PRICING-WINDOW

The international price for both crude oil and refined products have dropped by a decent figure, the Ghana Cedi depreciated marginally, fuel stock level in the country remain high. Following the positive statistics emanating from the sector, the Institute for Energy Security (IES) expects fuel prices to drop slightly in this first Pricing-window for the month of July 2017. However, with National Petroleum Authority’s revised specifications for Gasoil, Gasoline and Kerosene expected to come into force on 1st July 2017; fuel prices at the pump could see a rise.

Signed:

RICHMOND ROCKSON

Principal Research Analyst, Petroleum Unit - IES

Contacts: 0244871916/0555990054