Fuel Prices hit 5 Cedis Per Litre

The price of fuel has hit the GH¢5 mark in line with the Institute for Energy Security’s prediction to that effect in the second pricing window of September 2018.

The Institute of Energy Security (IES) in its review of prices of fuel in the first pricing-window for the month of July predicted an increase in fuel prices this month September.

The institute cites that happenings on the international oil and fuel markets, coupled with persistent depreciation of the local currency has set the stage for a potential fuel price hikes in the country.

“Crude oil price surged by some 3.1%, Gasoline and Gasoil went up by 4.58% and 2.29% respectively; and the Cedi weakened by approximately 1.92% against the U.S. Dollar within the past two weeks,” the statement read.

The potential fuel price increment on the local market can however be forestalled or mitigated should the National Petroleum Authority (NPA) kick in the Price Stabilization and Recovery Levy mechanism.

On the performance of the local fuel market, IES said the first window in September saw prices of gasoline and gasoil remain unchanged, as it had projected earlier.

“Current national average prices of both gasoline and gasoil at the pump is GHS4.90 and GHS4.93, respectively. IES’ Market scan shows Fraga, Benab, Frimps Oil, Zen Petroleum, Lucky Oil, and Alinco Oil, among others, sell the lowest-priced fuel on the market relative to other OMCs”.

Average Brent crude price within the first pricing window has also shot up sharply from $73.03 to $77.52 per barrel. Prices of finished products based on Standard and Poor’s Platts Benchmark showed that gasoline and gasoil prices have shot up by 5.01% and 1.64%, respectively. Gasoil, which was previously selling for $653.33 per metric tonne is now trading at $685.32 per metric tonne. Gasoline is also selling at $747.23 per metric tonne, up from its previous lower price of $735.18 per metric tonne.

IES said the depreciation of the Ghana cedi by 3.03% within two weeks against the U.S. Dollar has not helped matters.

“The Cedi, which sold at GHS4.80 at the last window, is currently selling at GHS4.95. Despite initial challenges with a loading arm leakage and a TOR-Sahara inter-depot product transfer over the past pricing window that led to delays and change in discharge schedules, the country received 12,000 metric tonnes of LPG, 21,300 metric tonnes of gasoline, 30,000 metric tonnes of gasoil and 18,000 metric tonnes of ATK,” the release added.