A review of the first pricing window of October 2017 by the Institute for Energy Security (IES) has shown that fuel prices are likely to drop.

A statement by IES said the local fuel market recorded interesting turn of events as the effect of deregulation came to the rescue of petroleum consumers.

Fuel prices were projected to be fairly stable by the institute.

Total was the first Oil Marketing Company (OMC) to effect price change, reducing gasoline by 1% and increasing gasoil by 1.5%.

Competition forced most OMCs to reduce prices, as Goil, the market leader, reduced prices of gasoline and gasoil by 1.1% and 0.47%.

The average price of gasoline now stands at GHS4.35, while gasoil goes for GHS4.27.

A market scan done by IES shows Lucky Oil, Zen Petroleum, Frimps Oil, Glory Oil and Puma Energy are selling at the lowest price per litre at the pump.

Meanwhile on the world oil market, Brent crude price recorded some level of stability, with the price per barrel falling marginally from a previous average of $56.92 to $56.49, a percentage change of 0.76%.

OPEC’s increased production has kept prices from rising beyond its normal price range lately.

Standard and Poor’s Global Platts benchmark suggests a 4.90% drop in price for gasoline to close at $560.18 per metric tonne from$589.02 on average terms.

Gasoil prices also dropped marginally by 0.37%; from a previous average of $533.89 to $531.89 per metric tonne.

Local Forex and Fuel Stock

The Ghana cedi recorded appreciable value as compared to the US Dollar, with the local currency currently trading at GHS4.40 to a dollar.

“Data by IES Economic Desk shows this is the most significant appreciation of the cedi in four consecutives pricing-windows. Between 27th September 2017 and 12th October 2017, just 48,000 metric tonnes of Gasoline and 46,000 metric tonnes were discharged at Tema Port (CMB) and Takoradi Port (Jetty) to augment the country’s fuel stock. However, few tonnages of both gasoline and gasoil could be spotted at anchorage.”

PROJECTIONS FOR OCTOBER 2017 SECOND PRICING-WINDOW

With the following positive indicators recorded; appreciation of the Ghana cedi, drop in prices of gasoline and gasoil on the international market and relatively stable crude oil prices on the global fuel market; the Institute for Energy Security (IES) forsees a downward review of prices at the pump in the second pricing-window of October 2017.

The institute said it trusts that oil marketers will be guided by these fundamentals in terms of their pricing with the next 15 days.