The Institute of Energy Security IES has predicted an additional drop in the prices of fuel on the local market between 16% and 24% in the first pricing window for April 2020.
The Institute says the significant fall in the prices of Brent crude, gasoline and gasoil on the world market, is what will push prices on the local market to fall.
“Reference to the significant fall of 33.36% in Brent crude price, coupled with the considerable drop in the prices of Gasoline (51.29%) and Gasoil (27.96%) on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the local market dropping by 16% – 24% in the first Pricing-window for April 2020, and in line with the Price Deregulation regime,” the Institute said in a statement.
Meanwhile, the substantial fall in the value of the Cedi, relative to the US Dollar in the last few days might have an opposing effect on the selling price of fuel within the first pricing window of April 2020.
What are the current prices of fuel on the local fuel market?
Contrary to the National Petroleum Authority’s prediction of a 15% reduction for the last Pricing-window under review, fuel prices at the pump experienced some 8.8% average reductions across some major Oil Marketing Companies (OMCs).
Earlier in March, the Institute pleaded with government through the National Petroleum Authority (NPA), to pressure Oil Marketing Companies (OMCs), to reduce prices of fuel at the pumps to reflect the trend on the international market and the relative stability of the Cedi against the US Dollar.
For the period under review, “while Shell (Vivo) reduced Gasoil & Gasoline by roughly 4.3%, Goil and Total Ghana shaved-off approximately 11% for Gasoil and Gasoline, Zen Petroleum on the hand gave away a whopping 14% for both products to sell at Gh¢4.25 per litre; thus making it the OMC with the least selling price on the market,” the statement noted.
Today, the national average price of fuel per litre at the pump stands at Gh¢4.88 and Gh¢4.90 for Gasoline and Gasoil respectively.
According to IES Market-scan, Zen Petroleum, Benab Oil, Nick Petroleum, Frimps Oil and Champion Oil are selling the cheapest fuel at the pumps.
The trend in the world oil market
Crude oil prices declined at an average price of $30-margin for this window due to a significant decrease in demand as major economies are on lockdown due to the Coronavirus pandemic, cutting consumption by 25%.
As a result, Brent crude had a huge fall by 33.36%, from $45.89 per barrel to close at $30.58 per barrel on average terms during the period under review.