The Institute for Energy Security (IES) has hinted of a possible rise in fuel prices in its projections for the second pricing-window for May 2018.
In a release, the institute indicated that the increases in Brent crude price as well as finished products coupled with the depreciation of the cedi do not present positive news for the petroleum consumer.
Within the period under review, the cedi depreciated against the U.S. dollar, from a previous trading average of GHS 4.50 to close the window at GHS 4.56, representing a drop of 1.33 percent.
Brent crude price continues to soar on the international fuel market, moving from US$ 73.01 per barrel to close trading at US$ 75.12 per barrel, as happenings in the geopolitical space especially likely US sanctions on Iran continues to push crude prices upwards.
As at yesterday, Brent crude was trading at US$ 78.92 per barrel, with Goldman Sachs projecting Brent could trade at US$ 82.5 per barrel by summer.
Guided by the fundamentals in pricing petroleum products, the Institute for Energy Security (IES) foresees fuel prices recording slight increases on the local market.
For the third consecutive pricing-windows, petroleum consumers heaved a sigh of relief as prices at the pump remained largely unchanged.
“As has been done in the last two previous pricing-windows, the National Petroleum Authority (NPA) still has the option of standardizing prices at the pump with the Price Stabilization and Recovery Levy.”
On the average, Gasoline and Gasoil could be sold to you at GHS 4.57 and GHS 4.56 respectively on the local market.
With Brent crude and finished products rising on the international fuel market, consumers have had to budget and pay same amount to procure petroleum products due to the National Petroleum Authority’s (NPA’s) intervention with the Price Stabilization and Recovery Levy.
From May 1, 2018 to date, total petroleum imports stand at 231,650 metric tonnes; 95,9650 metric tonnes of Gasoline, 68,500 metric tonnes of Gasoil, 10,000 metric tonnes of Jet Fuel (ATK) and 7,500 metric tonnes of Butane (LPG).
However, it is anticipated that, competition among Oil Marketing Companies (OMCs) for market share may keep prices stable at the pump.
IES Market-Scan shows Zen Petroleum continue to lead the market with the cheapest Gasoline and Gasoil, followed by Benab Oil, Pacific, Lucky Oil and Frimps Oil.
By Joshua W. Amlanu