Residents of Ghana might witness fuel price increase

Residents of Ghana are about to face an increase in the prices of Premium Motor Spirit with the current the current analysis of the Institute for Energy Security (IES).

The IES has projected that fuel prices will rise on the local market by up to 2.5 percent in the second pricing window for this month.

IES’ Principal Research Analyst, Richmond Rockson, disclosed that the projection was premised on fundamental indicators such as the rise in the price of gasoline, gas oil and Brent crude oil on the international market.

Gasoline sells for GH¢4.56 and GH¢4.57

The IES research revealed that the national average selling price of a litre of gasoline and gas oil currently stands between GH¢4.56 and GH¢4.57.

This figure shows that at least all Oil Marketing Companies (OMCs) increased the prices of gasoline and gas oil at an average of two percent.

The IES added further that its survey indicates that Zen Petroleum, Benab Oil, Pacific, Lucky Oil and Frimps Oil lead the chart of OMCs that are selling the cheapest fuel per litre at the pumps.

Possible Intervention

IES, however, noted that the feared increase might be averted only if the National Petroleum Authority comes to its aid.

A statement from IES said the feared increase may be averted by an intervention NPA if it decides to trigger the price stabilization mechanism in the period under review.

IES also noted that data from the foreign exchange market suggested a fairly stable local currency with the Ghana Cedis closing trading at GH¢4.55 to a dollar, with a depreciation of 0.89 percent.

From April 1, this year to date, it said total petroleum imports recorded stand at 225,886 metric tonnes; 98,220 metric tonnes of gasoline, 120,516 metric tonnes of gas oil and 7,150 metric tonnes of Butane.

“Within the period under review, Brent crude oil closed trading at $68.96 per barrel from a previous average of $66.85, representing 3.16 percent. And Brent is in position to post extra gains within the next two weeks due to shrinking global oil inventories and concerns over the escalating military activities in the Middle East. As at April 16, 2018, Brent crude is trading around $72 per barrel mark, one of the highest averages in recent times,” a statement from IES stated.