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Business News of Friday, 31 August 2018


Fuel prices to remain stable in September

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Prices of fuel are expected to remain relatively stable for the first pricing window in September.

This means that for the first two weeks of September, consumers should be paying almost the same amount for fuel they purchase.

The Institute of Energy Security (IES) who predicted this tells Citi Business News the stability could be attributed to the slight reduction in prices of finished products such as gasoline and gasoil.

The IES also attributes the development to the stability of the cedi against the major trading currencies such as the dollar.

Research Analyst at the IES, Mikdad Mohammed explains that despite the slight rise in the price of brent crude on the international market, prices of finished products have experienced slight reduction.

“But for this particular window, the indices have changed slightly compared to the last window. There have been reductions in the price of gasoline and a very marginal increment for gasoil and the cedi over the period has also had some strength against the dollar. If you look at stock too, we already have a lot of gas oil in the system so over the period between the last window, from August 15 to August 29 when we did this analysis, there were no imports of gasoil; just gasoline which was around 43,600 metric tonnes,” he said.

Fuel prices for the second pricing window in August went up by about 2% with consumers having to pay more for the same quantity at the various pumps.

Prices of petrol and diesel shot by two percent to 4 cedis 95 pesewas.

The increase saw consumers calling on the National Petroleum Authority to step in with the price stabilization and recovery levy.

The cries saw some major oil marketing companies reducing their prices by about 0.4 and 0.5 pesewas per litre.

Mikdad Mohammed, however, says consumers will not be required to pay more at the pumps for this first pricing window in September.

“For this pricing window, we expect that competition will continue to work between the OMC’s. But for this window equally, even though prices are not supposed to move anyway, if there is going to be some movement it could be as a result of competition to see consumers buying fuel at a cheaper price. Because OMC’s would want to keep their market share and be within the range”.

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