Fuel prices to remain largely stable – IES
Consumers should expect fuel at the various stations to remain stable within the second pricing window, which begins today, April 16, the Institute for Energy Security (IES) has stated.
They arrived at the conclusion based on “relatively modest reduction in prices of Gasoline and Gasoil on the international market, as well as the 2.29% marginal reduction in the price of the International Benchmark-Brent Crude”.
However, they also foresee competition between Oil Marketing Companies (OMCs) to control and gain more market share. The development could cause the selling price of fuel to fall marginally in the second half of April 2020.
After analysing the first pricing window from April 1 to April 15, IES explained that prices at the pump experienced reductions across some major OMCs.
While Goil, Zen Petroleum, Puma and Total Ghana shaved-off to sell at an average price of Gh¢4.19 for Gasoil and Gasoline, Shell gave away a whopping 16% for Gasoline and Gasoil to sell at Gh¢4.29 per litre; thus making Shell Ghana the OMC with the largest percentage reduction.
However, the second pricing window of February 2020 saw some OMCs maintaining their prices at the pump to record a national average price of Gh¢4.14 for Gasoil and Gasoline.
Data collated by IES from the foreign exchange market showed that the Cedi depreciated by 0.72% against the U.S. Dollar, trading at an average price of Gh¢5.63 to the U.S. Dollar over the period under review; from a previous rate of Gh¢5.59 recorded in the second pricing window of March 2020.
Crude oil prices remain largely around the $30-margin for this window. Prices moved above $30-margin from April 3rd, as the market reacted positively towards the scheduled OPEC+ meeting and as well as President Donald Trump’s suggestion that he had brokered a deal to end the oil price war. Following this, Brent crude declined marginally by 2.29% from $30.58 per barrel to close at $29.88 per barrel on average terms during the period under review.
S&P’s Platts benchmark for fuels shows average Gasoline price tumbling by 8.59% to close at $193.35 per metric tonne, from a previous average of $211.52 per metric tonne; while Gasoil declined by 5.32% to close trading at $288.38 per metric tonne, from a previous average of $304.57 per metric tonne.
Read full statement below: