The Institute for Energy Security (IES) has projected that fuel prices would be stable on the local market only if the National Petroleum Authority (NPA) decides to apply the Price Stabilisaion and Recovery (PSR) Levy mechanism for the second consecutive pricing-window.

A statement signed by Mr Richmond Rockson, Principal Analyst, IES, explained that the NPA’s intervention with the PSR Levy, and competition amongst Oil Marketing Companies (OMCs) came to the rescue of petroleum consumers, forestalling a price increment of up to 2.5% as projected by IES.

The analyst shared that the prices of both Gasoline and Gasoil scaled up on the international fuel market. Brent crude experienced a significant surge in price, and as the Ghanaian Cedi recorded a marginal gain against the U.S. Dollar, fuel imports looked good over the last two weeks; although with low strategic reserves.

He said “OMCs that increased prices within the period had to revert to old prices to be able to compete for market share. As a result, Gasoline and Gasoil continue to be traded at GH¢ 4.57 and GH¢ 4.56 respectively on national average terms.”

World Oil Market Prices

He also pointed out that Brent crude price continued to incline on the global market, with prices within the last 14days averaging $73.01 per barrel, as wave of global economic growth continue to drive up the demand of oil, and U.S. production experiences a slack over last year.

Mr Rockson added that Standard and Poor’s Global Platts benchmark showed an upward price adjustment for both Gasoline and Gas oil, with Gasoline averaging $694.93 per metric tonne (price change of 1.93%) and Gas oil recording a significant price increase of 4.55% as it closed trading at $644.57 per metric tonne over the last two weeks.

Local Forex and Fuel Stock

He also stated that over the last 14 days, the Ghana Cedi gained a marginal value against the U.S. Dollar, with the local currency trading at an average of GH¢ 4.50, an appreciation of 1.09% compared to the previous average of GH¢ 4.55.

He said “from April 16, 2018 to date, total petroleum imports stand at 135,294 metric tonne; 100,994 metric tonnes of Gasoline, 9000 metric tonnes of Gas oil, 13,500 metric tonnes of Jet Fuel (ATK) and 11,800 metric tonnes of Butane (LPG).”

For the second consecutive pricing-window, the analyst pointed out that Zen Petroleum, Benab Oil, Pacific, Lucky Oil and Frimps Oil continued to sell the least-priced Gasoline and Gas oil on the local fuel market as revealed by IES Market-Scan,” he explained.