A review of the local fuel market performance in November’s first pricing window saw an “across the board” reduction in prices at oil marketing companies (OMCs), according to the Institute of Energy Security.
Prices fell by GH¢0.06 per litre dropping to 1.15%.
As it stands, the average price of gasoline and gasoil remains at GH¢5.13 and GH¢5.15, respectively. Benab, Cash Oil, Zen Petroleum, Pacific Oil, Alinco Oil, Frimps Oil, Fraga Oil, and Lucky currently sell the lowest priced fuel prices, an IES market-scan shows.
Brent Crude prices plummeted more than 20% following the U.S. slapping sanctions against Iran earlier this month.
At its peak in October, Brent Crude stood at $86 per barrel but toppled to below $70, a sharp decline.
“Average Brent crude price continues to fall- from $83.96 per barrel in October second pricing window, to $78.97 in November’s first pricing window and now hitting $73.22 per barrel for November’s second pricing window, to $78.97 in November’s first pricing window and now hitting $73.22 per barrel for November second pricing-window,” an IES report reads.
According to Standard and Poor’s Global Platts analysis, gasoline and gasoil fell by 7% and 3%, respectively. At the close of trading, gasoil sold at $646.30 per metric ton and gasoil at $691.88 per metric ton.
Following a slight rebound in the value of the cedi against the dollar, the IES economic desk found that the cedi has relapsed again by 1.46% trading at GH¢4.85 per dollar.
For November’s second pricing window, IES projects further drops in prices at the pump. Reasons behind the reduction include the steep decline in gasoline, gasoil and Brent Crude prices.
“While IES has taken due cognizance of the complaints of depressed margins by the OMCs, it is important that fuel price reduction, where it is due, is implemented at the pump in a timely and fair manner all things being equal to bring some minimum relief to the Ghanaian public.”