Fuel Prices Expected To Remain Stable - IES Predicts
The Institute of Energy Security (IES) in its review of prices of fuel in the second Pricing-window of July 2018 saw fuel prices at the pump remaining largely the same as a result of competition even as Ex-refinery prices were increased to the Oil Marketing Companies (OMCs) by the Bulk Distributing Companies (BDCs).
Brent crude oil price experienced a reduction from a previous average rate of $77.52 per barrel to a current average price of $73.62 per barrel, suggesting percentage change of 5.03%.
"Gasoline went down by 2.55% with Gasoil going down further by 3.63%, closing the window at $712.48 per metric tonne and $643.25 per metric tonne respectively. Previously, Gasoline and Gasoil traded for $731.64 and $667.48 per metric tonne respectively," the statement read.
The fuel stock in Ghana had 8500mt of LPG, 46,300mt of Gasoil, 28,000mt of Gasoline and 10,500mt of ATK added by discharges from various vessels in the course of the window.
In a press release copied to Peacefmonline.com, Mikdad Mohammed averred that IES's market-scan indicates that the least priced fuel at the pump relative to other OMCs can be sourced from Alinco Oil, Frimps Oil, Pacific, Zen Petroleum, Benab Oil, Pacific, and Lucky Oil.
Read full statement by the Institute for Energy Security:
PRICES OF FUEL MAY HOLD REVIEW OF JULY 2018 SECOND PRICING-WINDOW
Local Fuel Market Performance
The second Pricing-window of July 2018 saw fuel prices at the pump remaining largely the same as a result of competition even as Ex-refinery prices were increased to the Oil Marketing Companies (OMCs) by the Bulk Distributing Companies (BDCs).
Hence, Gasoline and Gasoil prices continue to be sold at GH¢4.85 and GH¢4.83 respectively.
From IES Market-scan, the least priced fuel at the pump relative to other OMCs can be sourced from Alinco Oil, Frimps Oil, Pacific, Zen Petroleum, Benab Oil, Pacific, and Lucky Oil.
World Oil Market Prices
Brent crude oil price experienced a reduction from a previous average rate of $77.52 per barrel to a current average price of $73.62 per barrel, suggesting percentage change of 5.03%.
At the time of going to press, crude oil price was trading at $74 per barrel compared to a slightly higher figure of $75.33 at press time at the previous window.
From Standard and Poor’s Global Platts Assessment, finished products on the international market experienced a reduction within the window under review.
Gasoline went down by 2.55% with Gasoil going down further by 3.63%, closing the window at $712.48 per metric tonne and $643.25 per metric tonne respectively. Previously, Gasoline and Gasoil traded for $731.64 and $667.48 per metric tonne respectively.
Local Forex and Fuel Stock
The Cedi experienced a slight depreciation of 0.62% to the Dollar, compared to 1.92% in the previous window. The Dollar is currently selling for GH¢4.80 as against GH¢4.77 in the last Pricing-window.
The fuel stock in Ghana had 8500mt of LPG, 46,300mt of Gasoil, 28,000mt of Gasoline and 10,500mt of ATK added by discharges from various vessels in the course of the window.
PROJECTIONS FOR AUGUST 2018 FIRST PRICING-WINDOW
The cedi lost to the dollar by 0.62%, crude oil on the world market fell by 1.7%, Gasoline and Gasoil also dipped by 2.55% and 3.63% respectively.
In spite of the slight fall in the value of the local currency to the U.S. Dollar, decreases in world oil prices within the past two weeks point to marginal reductions in the prices of Gasoline and Gasoil on the local fuel market. However, the opportunity oil marketers lost to competition when market variables pointed to increments, may compel them to stay prices this time around.
As part of deregulation competition, some OMCs may want to consider marginal price reduction in order to compete for market share.
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