Petroleum prices to go up between 3 and 5 per cent

The Institute for Energy Security (IES) is predicting an increase in petroleum prices in the next pricing window. The increase is expected to be between three and five per cent.

The IES, in a press release, said indicators recorded in the first pricing window pointed to a negative impact on fuel prices on the local market.

“The prices of gasoline and gas oil, as well as fuel oil are likely to rise between three and five per cent,” it noted.

The release further stated that it was clear the price stabilisation mechanism implored by the National Petroleum Authority (NPA) might not be enough to forestall the persistent increases.

“It is important the government reviews the current price build-up and ensures that the minimum strategic stocks are kept at all material times,” it advised.

OMCs contradict NPA with price increases

The first pricing window for January 2018 recorded interesting turn of events, with a number of oil marketing companies (OMCs) increasing their prices by an average of four per cent contrary to assurances by the NPA that there would be no price changes.

Total Petroleum was the first to review its prices upwards, followed by Shell (Vivo Energy), Petrosol, Nasona, Fraga Oil and SEL, who all reviewed their prices from GH¢ 4.49 to GH¢ 4.67 for both gasoline and gas oil.

The price reviews were contained in a press release by the IES on the first pricing window for the year.

Subsequently, Total and Shell reversed their decision, and both are currently selling at the previous price of GH¢ 4.49 per litre.

A large number of OMCs, however, did not review their prices at the pump, with the national average prices for gasoline and gas oil currently at GH¢4.47.

World oil market prices 

Crude oil prices continued to surge on the global commodity market as brent crude price currently averages at US$67.70 per barrel, from a previous average of US$63.78 per barrel, representing an increase of 6.12 per cent.

Standard and Poor’s Global Platts benchmark also indicates a jump in prices for both gasoline and gas oil.

For the period under review, gasoline prices recorded a change of 5.4 per cent, moving from a previous average of US$600.11 per metric tonne to close at US$632.50 per metric tonne.

Gas oil prices also recorded a 6.03 per cent increase from a previous average of US$568.72 per metric tonne.