Fuel prices are e to remain unchanged, the Institute of Energy Security (IES), has said.
The IES said prices at the pump were displaced downward largely by the major marketers including Goil, Star Oil, Total Ghana, Puma and Shell (Vivo); in line with the Institute for Energy Security’s (IES) prediction for the Pricing-window under review. While Goil, Shell (Vivo), Petrosal, Puma and Total Ghana trimmed their prices to sell at an average per-litre price of Gh¢4.09 for Gasoil and Gh¢4.11 for Gasoline, few other Oil Marketing Companies (OMCs) moved their prices below the Gh¢4.00 per litre mark, to produce a national average price of Gh¢4.01 for Gasoline and Gh¢4.03 for Gasoil.
Over the past two weeks, Santol, Benab Oil, Nick Petroleum, 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.
Brent crude price remained largely above the $25 per barrel mark for the Pricing-window under assessment. Over the period, Brent Oil hit $30 a barrel for the first time since April 15. This positive gain can be attributed to the easing of restrictions in economic activities around the world, as well as reaction to the start of production cuts. Following this, Brent crude appreciated by 5.31% from $25.98 per barrel recorded at the end of the second Pricing-window of April to close at $27.36 per barrel on average terms at end of the first Pricing-window in May 2020.
S&P’s Platts benchmark for fuels shows average Gasoline price gained 17.96% to close at $202.85 per metric tonne, from a previous average of $171.97 per metric tonne. Meanwhile Gasoil declined by 8.14% to close trading at $215.88 per metric tonne, from a previous average of $235.00 per metric tonne.
Data collated by IES Economic Desk from the Foreign Exchange (Forex) market shows the Cedi depreciated by 0.89% against the U.S. Dollar; the major trading currency for oil. The Cedi traded at an average price of Gh¢5.68 to the Dollar over the period, a departure from the Gh¢5.63 recorded in the second Pricing-window of April, 2020.
Going by the 5.31% and 17.96% appreciation in prices of Crude oil and Gasoline respectively, and the fact that Gasoil tumbled by 8.14% on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the local market remaining largely unchanged in the second Pricing-window of May, 2020. The expected stability in prices of fuels at the pump, takes into account the local currency’s marginal depreciation against the U.S. Dollar.