Fuel Prices To Rise In September

Sep 2, 2020 - 02:31

The Institute of Energy Security (IES) has predicted a 'marginal' increment in fuel prices in the month of September.

IEA said it “foresees prices of fuel on the local market [Ghana] losing stability and going up marginally” in the first half of September 2020.

IES arrived on the predictions based on an appreciation in the prices of International Benchmark – Brent Crude (2.45%) and refined product – Gasoline (6.23%) as well as the 0.17% depreciation of the Cedi against the U.S. Dollar, observed in the second half of August 2020.

This was communicated in a release by IES Research & Policy Analyst, Raymond Nuworkpor. The IEA however noted that “competition between Oil Marketing Companies (OMCs) to control and gain market shares could result in selling price of fuels remaining unchanged within the first Pricing-window of September 2020”.

Explaining observations within the second pricing window in August, IES said fuel prices on the local market remained stable in the pricing-window under review.

Petroleum product prices within the second pricing-window of August 2020 saw majority of the OMCs maintaining the prices of Gasoline and Gasoil.

“The current national average price of fuel per litre at the pump is pegged at GH¢4.80 for both Gasoline and Gasoil,” IES noted.

The energy think tank identified Santol, Benab Oil, Nick Petroleum, Radiance, Champion and Cash Oil, joined Zen Petroleum as OMCs spotted by IES Market-scan as trading with the least-rates for Gasoline and Gasoil within the downstream oil market in the last two weeks of August.

IES said Brent crude price remained above the $44 per barrel mark for the Pricing-window under assessment. On 25th August, Brent crude rose to $45.86 a barrel, the highest since March 6th. This steady gain can be attributed to declining inventories, recovery on the stock market and the continuous easing of restrictions on economic activities around the world. Following this, Brent crude appreciated by 2.45% from $44.13 per barrel recorded at the end of the first Pricing-window of August to close at $45.21 per barrel on average terms at end of the second pricing Pricing-window in August 2020.

S&P’s Platts benchmark for fuels shows average Gasoline price appreciated by 6.23% to close at $407.86 per metric tonne, from a previous average of $383.94 per metric tonne. Meanwhile Gasoil declined by 0.11% to close trading at $370.55 per metric tonne, from a previous average of $370.96 per metric tonne.

Local Forex

Data collated by IES Economic Desk from the Foreign Exchange (Forex) market shows the Cedi depreciated by 0.17% against the U.S. Dollar, trading at an average price of Gh¢5.74 to the U.S. Dollar over the period, from a previous rate of Gh¢5.73 recorded in the first Pricing-window of August, 2020.