Fuel prices in Ghana to go up by 1.5% in the second pricing-window of July, IES reveals

The increase according to the IES is due to the rise in the price of Gasoline, Gasoil and Brent crude on the international fuel market.

The institute revealed this in a press statement signed by its research analyst Mikdad Mohammed.

According to the statement, “Guided by the fundamental indicators of local fuel price changes under deregulation; rise in the price of Gasoline, Gasoil and Brent crude on the international fuel market, the country’s local currency against the U.S. Dollar, the Institute for Energy Security(IES) foresees fuel prices to rise on the local market by up to 1.5%.”

It added that “This imminent price increase may be averted by an intervention from the National Petroleum Authority (NPA) if the regulator decides to trigger the Price Stabilization mechanism to standardize prices.”

Meanwhile, the IES said its market scan indicates that Benab Oil, Pacific Oil, Lucky Oil and Frimps Energy sell the least-priced fuel per litre at the pump.

Local Fuel Market Performance

Over the last two weeks, the prices of petroleum products at the pumps has remained unchanged.

This was largely due to favourable international market prices. Oil Marketing Companies (OMCs) across the country continued to sell a litre of Gasoline and Gasoil at an average price of GH¢5.15 and GH¢5.17.

World Oil Market Prices

Oil prices shot up due to OPEC production cuts and rising United States-Iran Tensions. Iran has announced it has exceeded the 3.67 percent Uranium Enrichment level imposed by the 2015 JCPOA and has gone beyond 4.5 percent.

Within the period under review, the average Brent crude price rose by 1.37%. From an average price of $64.09 per barrel in the last window, Brent crude currently trades at $64.97 per barrel.

According to Standard and Poor’s Global Platts benchmark for Gasoline and Gasoil, prices of both products recorded increases on the international fuel market.

Gasoline closed trading at $654.68 per metric tonne from a previous price of $613.91, a change of 6.64 percent. Gasoil saw a price change of 2.41 percent, from a previous price of $570.09. per metric tonne to close at $654.68 per metric tonne.

Local Forex and Fuel Stock

Data recorded from the foreign exchange market by IES Economic Department suggests a fairly stable local currency, as the Ghana Cedi closed trading at GH¢4.41 to a US Dollar, with a marginal depreciation of 0.94%.