Prices of fuel drops

Some Oil Marketing Companies (OMC’s) across Ghana have recorded a marginal drop in fuel price

Checks at the pumps today November 5, 2018 show that the top three OMCs, Goil, Shell and Total Ghana are selling both Petrol and Diesel at GHC 5.15 pesewas across the country.

Fuel prices went up in the last pricing window in the middle of October.  One litre of both petrol and diesel rose to 5 cedis, 21 pesewas.

Institute of Energy Security

However, the latest reduction is below the 2 to 4 percent decrease predicted by the Institute of Energy Security (IES).

According to the IES the fall in Brent crude prices, and finished products on the international market, as well as the cedi’s respectable gains against the dollar could lead to prices dropping at the pumps.

By this, the IES is optimistic the drop in the prices of fuel will bring some relief to Ghanaians at the pumps in the first pricing window in November.

Research Analyst at the IES, Mikdad Mohammed in an interview with Cit FM, stated that, they expect some Oil Marketing Companies to be influenced by the Price Deregulation policy to effect reductions beyond the projected margin.

“Unlike the previous window where we have had the depreciation of the cedi lead the increment, this particular window has had two major positive news. IES economic data show that we had an appreciation of around 2.4 percent from the cedi against the dollar,” he said.

“For Brent crude, we have had a reduction of about 5 percent and finished products have now come down too. When you take gas oil, for example, it has come down by about 5 percent, gasoline has also come down to beyond 2 percent. It is the cumulative effect of all of these indices that IES foresee a reduction in prices from the current 5cedis, 21 pesewas to about 5cedis, 10 pesewas” he added.

Last month, ghanatalksbusiness.com reported that the National Petroleum Authority expect prices of Petroleum products on the Ghanaian market to drop in the next pricing window.

Speaking at NPA Stakeholder Engagement in Downstream Petroleum sector on October 24, 2018, the CEO of NPA hinted that “the Ghana Cedi has made some gains against the United States Dollar and the nearly 2% decrease in the price of diesel and petrol as well as the observed 8% decrease in the price of LPG will be passed on to the public through pump prices, all things being equal”

Related Articles: Prices of Petroleum Products will be reduced soon – NPA

ghanatalksbusiness