Fuel prices to go up again – IES

The Institute of Energy Security (IES) is predicting a marginal increase in fuel prices in its review of this month’s first pricing window, spanning October 1-15, 2018.

The Institute attributed the expected increase to a rise in the average Brent crude price by 5.7 per cent with a corresponding increment in the prices of Gasoline and Gasoil on the international market.

Despite the expected “marginal increment”, the IES said, “some oil marketing companies (OMCs) could keep prices same to maintain market share as part of the deregulation policy.”

Currently, a litre of diesel and petrol are being sold at GH¢5.18pesewas and GH¢5.14pesewas respectively following last month’s hikes, necessitating calls for the removal of the Special Petroleum Tax in the price build-up of petroleum products.

Commenting on last month’s increment, the Energy Minister Jon Peter Amewu argued that but for numerous interventions by the Akufo-Addo government the increase would have been much more devastating.

“Without government intervention…prices today, would have been GH¢5.54 per litre for petrol and GH¢5.55 per litre for diesel,” said Mr. Amewu.

Below is IES’ full statement

REVIEW OF FIRST PRICING WINDOW OF OCTOBER 2018

 Local Fuel Market Performance

In the window under review, some select Oil Marketing Companies (OMCs) reviewed their prices downwards to maintain market shares, while largely prices stayed unchanged as projected by the institute. Gasoil and Gasoline continue to be sold on average terms at GHc5.09 and GHc 5.10 respectively after increasing by approximately 4% within the first window of September 2018. IES Market-Scan shows Union Oil, GOIL, Total, Shell, Zen Petroleum, Frimps, Pacific, and Lucky selling the least priced fuel on the market relative to other OMCs.

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