Fuel Prices Expected to Remain Fairly Stable : Institute for Energy Security

IES

Prices of fuel in the second Pricing-window for the month of April 2017 recorded some form of stability at the pump in
reference to Gasoline (Petrol) and Gasoil (Diesel). The stabilization in prices was as a result of stiff competition for market
share among the various Oil Marketing Companies (OMCs). Gasoline and Gasoil sold at Ghs 3.99 per litre and Ghs3.95 per
litre respectively on average terms.
The Institute for Energy Security’s Market-scan indicates that Lucky Oil, Frimps Oil, Puma Oil, Radiance Oil, and Goil are
the top 5 OMCs selling the cheapest Gasoline and Gasoil on the fuel market.
World Oil Market Prices Indices
Price of Brent crude found little to inspire an upward momentum, even as U.S. output capacity continued to rise to a 2-year
high. Price dropped from an opening of $54.17 per barrel to $52.97 per barrel within the Pricing-window, a percentage
change of 2.27%.
The Platts benchmark prices within the same period for Gasoline dropped by 0.59% from $557.92 to $554.61 per metric
tonne, while Gasoil increased by 1.03% from an opening of $465.38 per metric tonne to $470.17 per metric tonne.
Local Forex and Fuel Stock
The Ghana Cedi performed relatively well against the U.S. Dollar, opening at Ghs 4.22 against the U.S. Dollar, closing at
Ghs 4.18 for the period under review according to data compiled from the banking industry.
The stock of Gasoline has gone up from 102million litres to 126million litres whilst Gasoil dropped from 230million litres
to 217million litres. This combined stock of 343million litres is capable of meeting national demand for about 5 weeks.
PROJECTIONS FOR MAY 2017 FIRST PRICING-WINDOW
With the Ghanaian Cedi appreciating slightly against the U.S. Dollar, fuel stock levels remaining stable, Brent crude price
falling slightly, as well as stability in Platt prices of finished products; the Institute for Energy Security (IES) foresees fuel
prices on the local market remaining fairly stable.
It is also possible to see prices at the pump dipping slightly if the prevailing competition amongst the Oil Marketing

Companies continues.
Signed:
RICHMOND ROCKSON
Principal Research Analyst, Petroleum Unit – IES
Contacts: 0244871916/0555990054