Prices of petroleum products are expected to fall further in the first pricing window of April, the Institute for Energy Security (IES) has said.
Already, the prices have been reduced by oil marketing companies at the pumps twice in the second pricing window of March.
The first reduction is attributed to “favourable market indicators” as projected by IES prior to the beginning of the window.
The second reduction was as a result of the removal of Excise Levy and the review of the Special Petroleum Tax from 17.5% to 15% by the government.
In effect, prices at the pump dropped between 2.69% and 4.56%, according to IES, adding: “At the close of the window, the national average pump price stood at GHS4.21 per litre and GHS4.18 per litre for Gasoline and Gasoil, respectively.”
Over the window, Frimps Oil sold the cheapest Gasoline and Gasoil, with both products being sold at GHS4.145 per litre, IES said.
World Oil Market Prices
The average Platts prices for the second Pricing-window for both Gasoline and Gasoil dropped. The average price for Gasoline was recorded as $502.95 per metric tonne, representing a drop of 5.20% over the previous price of $530.63. Gasoil also dropped 5.9% to average $444.20 per metric tonne.
The Benchmark Brent crude price for the period under review also dropped from $53.5 per barrel to $51.5 per barrel, representing a percentage change of 3.73%. According to U.S Energy Information Agency, crude inventories continue to rise, compelling prices on the world market to drop further.
Local Forex and Fuel Stock
Data obtained from the banking sector suggest the Ghanaian cedi made significant gains against the U.S dollar by appreciating 4.20%, that is from GHS4.52 to GHS4.33 within the period under review.
The inventory of Gasoline and Gasoil in the country rose over the period. Today, Gasoil stock can meet four weeks, five days of national consumption while Gasoline stock can match four weeks, four days of national consumption.
PROJECTIONS FOR APRIL 2017 FIRST PRICING-WINDOW
The price of Brent crude has fallen by 3.73%, Gasoline and Gasoil prices on the world market have also fallen by up to 5.90%, the cedi made significant gains against the U.S dollar, and the stock of fuel in the country has risen substantially. In view of these positive fundamental drivers, the Institute for Energy Security expects fuel prices at the pump to trade up to 1.8 per cent below today’s national average pump prices.
Source: classfmonline.com
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Are you serious?
To be honest, the government has done quite well. I never imagined even the new government will get money to run the country let alone reduce some taxes. Within 4 months in office and things are turning around gradually, then I can't imargine by 2 or 3 yrs time. I now understand why mahama was referred to as incompetent. Things would have been out of hand if mahama was still governing. I'm sure even mahama is admiring the way akufo addo's government is managing the economy. God grant u de wisdom and good health to even do better for Ghana, Nana addo.
How long has Akuffo Addo being in power. When was it in the history of Mahama's government did he reduce fuel such as this. when fuel was reduced in the International market we never saw a change in the prices of fuel and we were not even getting the fuel to buy. Everything is a gradual process as the fuel prices continue to drop very soon that of electricity tariffs will go down. Let us speak the truth sometimes aaabaa
IT HAS STILL NOT DROPPED TO THE LEVEL MAHAMA LEFT FOR NANA.NANA PROMISED TO REDUCE FUEL, ELECTRICITY AND WATER FROM MAHAMA FIGURES.
GOOD NEWS; LET'S HOPE WHEN STARTS TO RISE IT WILL BE REPORTED THE SAME WAY IT HAS BEEN REPORTED NOW. WE ARE ALL AFFECTED BY THE INCREASE IN PETROLEUM PRICES.