REVIEW OF JULY 2017 FIRST PRICING-WINDOW

Local Fuel Market Performance

The local fuel market for the first Pricing-window in July 2017 recorded slight reductions by Oil Marketing Companies (OMCs) as envisaged by the institute. Prices at the pump for both Gasoline (Petrol) and Gasoil (Diesel) dropped by an average of 1.31%. The average pump price for Gasoline and Gasoil closed at Ghs 3.79 per litre and Ghs3.78 per litre respectively.

IES Market-scan indicates that Frimps Oil, Compass Oleum, Benab, Sky had the cheapest prices at the pump for Gasoline whiles for Frimps Oil, Sky, Compass Oleum, Benab and Puma had the cheapest prices for Gasoil on the market.

World Oil Market Prices

Figures obtained from the international oil market shows Benchmark Brent crude remained fairly stable, from the previous price average of $48.87 per barrel to $49.07 per barrel, a change of 0.40%. This, according to Energy Information Administration (EIA), was as a result of the significant drop in crude oil supplies.

Standard and Poor’s Global Platts benchmark suggests that within the period under review, price for Gasoline increased by 2.86%, to $504.57 per metric tonne from $490.55 per metric tonne, while Gasoil shot up by 4.57%, from a previous average of  $418.25 per metric tonne to $437.27.

Local Forex and Fuel Stock

Figures from the banking industry shows the Ghana Cedi continued to perform poorly against the U.S. Dollar, depreciating for the fifth consecutive week. It opened at Ghs4.36 against the U.S. Dollar and closed at an average of Ghs4.39, a percentage change of 0.69%.

The combined stock of Gasoline and Gasoil in the country stands at 185,294,000 litres, and could meet 3-weeks, 5 days of national demand. 

PROJECTIONS FOR JULY 2017 SECOND PRICING-WINDOW

Guided by the fundamental indicators; Depreciation of the Cedi, fairly stable prices of Brent crude as well as the rise in prices for finished products on the international market and the fuel stock level in the country, Institute for Energy Security (IES) expects fuel prices to remain stable in this second Pricing-window for the month of July 2017. However, the revised specification by National Petroleum Authority (NPA) could have effect on prices at the pump.

Signed:

RICHMOND ROCKSON

Principal Research Analyst