Fuel price cross the GHS 8 mark
Price of fuel at the various pumps, has crossed the GHS 8 mark following increments in the prices of Brent crude oil on the international market coupled with the depreciation of the cedi.
Checks by norvanreports indicate that, TOTAL, one of the biggest Oil Marketing Company (OMC) in the country is selling both diesel and petrol at GHS 8.29.
The increment in the price of fuel at the pumps is consistent with the Institute for Energy Security (IES) prediction of a price increment in fuel in the first-pricing window of March 2022.
The IES in its assessment of the first pricing window of March 2022 projected further price increments in the sale of Liquefied Petroleum Gas (LPG), diesel and petrol at the various pumps.
According to the IES, petroleum products at the local pumps will continue to see increments in prices in the first pricing window of March 2022.
Read: Societe Generale posts NPL of 7.5% in 2021; half the industry’s average
“As we enter March 2022, the Institute for Energy Security (IES) projects another rise in the price of Liquefied Petroleum Gas (LPG), Diesel, and Petrol at the pump.”
“The impending price increases have been largely influenced by the sharp depreciation of the Cedi against the US Dollar. Other factors include the 3.33% increase in the price of Brent crude, the 2.71% rise in LPG price, the 3.58% increase in the price of Gasoline, and the 4.50% jump in Gasoil price; all on the international oil and fuel markets”, averred the think tank.
Prices of fuel at the local pumps increased across the country in the second Pricing window of February 2022, this was occasioned by the Cedi’s fall in value against the dollar and rising international oil prices.
The price of Brent Crude rose within the period under assessment, reaching an average of $94.10 per barrel and representing an increase of 3.33% over the previous window’s average price of $91.06 per barrel.
Read details of IES assessment of the first pricing window of March 2022
Local Fuel Market Performance
Prices of fuel at local pumps increased across the country in the second Pricing window of February 2022, occasioned by the Cedi’s fall in value against the dollar and rising international oil prices. Prices at most pumps have risen beyond Gh¢7.70 per litre for both Gasoline and Gasoil, thus bringing the national average price for both products to Gh¢7.86 per litre. The current average price represents an increase of 7% over the previous average price of Gh¢7.35 per litre.
The IES Market-scan picked Benab Oil, Zen Petroleum, Goodness Oil, Star Oil, Dukes Oil and Reliance as the Oil Marketing Companies with the least-priced fuel on the local market, while Total Energies, Shell (Vivo), Sel, Allied and Puma joined a few others to sell the highest-priced fuel on the market within the past Pricing-window.
World Oil Market
Price of Brent Crude rose within the period under assessment, reaching an average of $94.10 per barrel and representing an increase of 3.33% over the previous window’s average price of $91.06 per barrel.
Source: IES Construct, with data from Oilprice.
Crude oil prices were set on the rise on Thursday, 24th February 2022 when markets became aware of a military operation sanctioned by the Russian leader, Vladimir Putin. The so-called “special military operation” in Ukraine organized under the hand of the President fueled market anxiety over the potential impact for oil and gas supply from the region and the escalating tensions of a potential World War III. Within the space of hours when the UN Security Council was in a meeting, the President announced a “special military operation” against Ukraine after recognizing the separatist regions of Lugansk and Donetsk earlier in the week. This drew discontent from the West and across the world. Swift sanctions, including on the company building Nord Stream 2, were announced on Wednesday to quell the ‘invasion’.
The Ukrainian Foreign Minister Dmytro Kuleba intimated that Putin had “launched a full-scale invasion of Ukraine.” Meanwhile, Putin had said Russia’s intentions were mere to protect the citizens of eastern Ukraine after the United States ignored Russia’s request to keep Ukraine from entering NATO. A claim the world has come to disregard in clear uncertain terms.
The invasion shook the world oil market and sent oil prices to their highest since 2014, reaching above $106 per barrel. The cautious reaction of Western leaders in issuing out sanctions, carefully avoiding the Russian energy industry brought oil prices back down on Friday, 25th February to below $100 per barrel.
World Fuel Market
Price of the refined products; Gasoline, Gasoil and Liquefied Petroleum Gas (LPG), monitored on Standard and Poor’s (S&P’s) global Platts platform also points to increases within the just ended Pricing-window. The price of Gasoline increased by 3.42%, representing an addition of $30.21 to its earlier price of $882.27 to close at $912.48 per metric tonne. Gasoil price also extended its gains by 2.14%, adding $17.59 to its earlier price of $821.46 per metric tonne ending the period at $839.05 per metric tonne. Also, the price of LPG on the international fuel market recorded a marginal jump of 1.53% to add $12.69 to its earlier price of $828.79 to close trading at $841.48 per metric tonne.
Local Forex
The data analyzed by the IES Economic Desk on the Foreign Exchange (Forex) market within the Pricing-window, reveals that the Ghanaian Cedi further depreciated against major trading currencies. Against the Greenback, the Cedi depreciated further by 4.11% to close at Gh¢6.85 to the Dollar.
IES PROJECTIONS FOR MARCH 2022 FIRST PRICING-WINDOW
As we enter March 2022, the Institute for Energy Security (IES) projects another rise in the price of Liquefied Petroleum Gas (LPG), Diesel, and Petrol at the pump. The impending price increases have been largely influenced by the sharp depreciation of the Cedi against the US Dollar. Other factors include the 3.33% increase in the price of Brent crude, the 2.71% rise in LPG price, the 3.58% increase in the price of Gasoline, and the 4.50% jump in Gasoil price; all on the international oil and fuel markets.
