Price of petroleum products on the local market will remain largely stable at least for the next two weeks.
According to the Institute of Energy Security (IES), this is due to the relative stable prices of petrol and diesel on the international market, coupled with the 1.32% upward reverse in price of International Benchmark – Brent Crude.
However, it said competition between Oil Marketing Companies (OMCs) to control and gain more market shares may result in selling price of fuel falling marginally within the first Pricing-window of March 2020.
Oil prices reverse upward briefly within the second Pricing-window under review as implied demand destruction was less than expected.
However, oil prices fell on Friday, 21st of February, as OPEC decided not to move its March meeting forward while Russia indicated that it currently has no intentions to cut production further. Brent crude rallied marginally by 1.32% from $55.89 per barrel to close at $56.63 per barrel on average terms during the period under review.
From the Foreign Exchange market, the cedi appreciated by 4.98% against the U.S. dollar, trading at an average price of Gh¢5.34 to the U.S. Dollar over the period under review; from a previous rate of GH¢5.62 recorded in the first Pricing-window of February, 2020.
Meanwhile, fuel prices at the pump experienced reduction across some major OMCs including Goil, Total Ghana and Zen Petroleum in the Pricing-window under review as projected by the IES.
While Goil and Total Ghana shaved-off 1.28% and 0.91% for petrol and diesel, Zen Petroleum gave away a whopping 6% for petrol and diesel to sell at GH¢4.92 per litre; thus, making Zen petroleum the OMC with the least selling price.
However, the second Pricing-window of February 2020 saw some OMCs maintaining their prices at the pump to record a national average price of GH¢5.41 and Gh¢5.40 for petrol and diesel respectively.
Within the period under review, Benab Oil, Nick Petroleum, Frimps, Champion and Cash Oil, joined Zen Petroleum as OMCs that sold the least-priced on the local market relative to others in the industry as found by IES Market-scan.