Fuel Prices To Stay Stable Despite Cedi Depreciation

Research Analyst of Institute for Energy Security (IES), Mikdad Mohammed in the review of February 2019 first pricing-widow in terms of local fuel market performance has indicated that most Oil Marketing Companies (OMCs) kept prices unchanged in order to compete for market share against the prediction of marginal fuel price increment at the pump.

He indicated in a report copied to Peacefmonline.com that average prices of both Gasoline and Gasoil stood at Ghc4.94 and Ghc4.93 respectively; thus, IES Market-scan shows Benab, Pacific, Telenergy, Zen, SO Energy, Fraga and Frimps Oil sold the least-priced fuel on the market relative to other OMCs.

The report also shows that average Brent crude price on the World Oil Market has gone up 0.65 percent, rising from $61.28 per barrel in the last Pricing widow to $61.68 per barrel as at the close of this widow.

Below Is Full Statement of IES:

Fuel Prices To Stay Stable Despite Cedi Depreciation

Review Of February 2019 First Pricing-Window

Local Fuel Market Performance

Whereas the institute foresaw fuel prices rising marginally at the pump, most Oil Marketing Companies (OMCs) kept prices unchanged in order to compete for market share. Average prices of both Gasoline and Gasoil stood at GH¢4.94 and GH¢4.93 respectively.

According to IES Market-scan, Benab, Pacific, Telenergy, Zen, SO Energy, Fraga and Frimps Oil sold the least-priced fuel on the market relative to other OMCs.

World Oil Market

Average Brent crude price has gone up 0.65%, rising from $61.28 per barrel in the last Pricing window to $61.68 per barrel as at the close of this window. The market has since entered a bullish mode as US twin sanctions on Iran and Venezuela pinch. Also heavily influencing the market is Saudi Arabia’s declaration to continue to cut output, with plans to lower production to as low as 9.8 mb/d in March, approximately half a million barrels per day lower than it had promised. On finished products prices, Standard and Poor’s Platts benchmark show both Gasoline and Gasoil experienced marginal increments. Gasoline price inched upwards by 1.53% rising from $500.23 per metric ton to $507 per metric ton. Gasoil prices also rose from $566.78 per metric ton to $576.93 per metric ton, representing an increment of 1.79%.

Local Forex

The Cedi continues to trade beyond GH¢5, sliding further against the dollar in a second consecutive Pricing-window. IES economic Desk computed figures show the cedi depreciated by 3.96%. The cedi which sold at GH¢5.05 at the last window is currently selling at GH¢5.25.

IES PROJECTION FOR THE SECOND PRICING-WINDOW OF FEBRUARY 2019

The Institute for Energy Security IES foresees fuel prices staying stable for the second Pricing window of February, 2019. This is despite the 3.96% depreciation of the Cedi against the dollar and a 1.53% and 1.79% increase in prices of Gasoline and Gasoil on the international market respectively. While the prices of fuel at major Oil Marketing Companies (OMCs) is not expected to rise, some OMCs may consider reviewing prices downwards to keep their market share as a result of the competition associated with the de-regulation policy. The institute wishes to renew its call on government and the Monetary Policy Committee of the Central Bank to as a matter of urgency arrest the decline of the Cedi against other major world currencies particularly, the dollar.

Signed:

MIKDAD MOHAMMED

IES Research Analyst

(0244374325)

Source: Daniel Adu Darko/Peacefmonline.com/[email protected]