15th March, 2018

PRICES TO STABILIZE ON POSITIVE INTERNATIONAL NEWS

REVIEW OF MARCH 2018 FIRST PRICING-WINDOW

Local Fuel Market Performance

After several weeks of price hikes which led to the downward review of the Special Petroleum Tax (SPT), one
would have expected that petroleum consumers to have benefitted from favourable oil indicators. Unfortunately,
consumers were shortchanged as the expected 1 to 3% price drop failed to reflect at the pumps. This according
to the National Petroleum Authority (NPA), was as a result of the restoration of the Price Stabilization and
Recovery Levy which was removed (PSRL).
All oil marketing companies (OMCs) stayed their prices, selling on average terms a litre of Gasoline and
Gasoline at Ghs 4.51 and Ghs 4.49 respectively.
IES-Market scan show that Zen Petroleum, Benab Oil, Pacific, Lucky Oil and Puma Energy continue to sell fuel
at the lowest cost at the pump.

World Oil Market Prices

Brent crude recorded slight price changes as the commodity closed trading at an average of $64.91 per barrel
from a previous average of $65.01 per barrel; a 0.15% change influenced by a strong Chinese factory activity, in
spite of concern over the pace of growth in U.S. output.
Platts data for Gasoline and Gasoil for the period under review shows a price increase of 1.03% and 0.74%
respectively, with Gasoline closing trading at $622.64 per metric tonne while Gasoil averaged $571.61 per
metric tonne.

Local Forex and Fuel Stock

Figures gathered from the banking sector by IES Economic Desk shows a marginal depreciation of the Ghana
Cedi to the U.S Dollar, with the local currency currently trading at an average rate of Ghs 4.55, representing
change of 0.89%. And from March 1, 2018 to date, 74,500 metric tonnes of Gasoline, 103,500 metric tonnes of
Gasoil, 16,000 metric tonnes of fuel oil and 27,250 metric tonnes of Naphtha were added to the country’s fuel
stock through importation.

PROJECTIONS FOR MARCH 2018 SECOND PRICING-WINDOW

With the marginal depreciation of the local currency against the U.S. Dollar, the fairly stable prices Gasoline and
Gasoil in particular on the international commodity market, and the insignificant price change in Brent crude, the
Institute for Energy Security (IES) foresees prices on the local fuel market remaining fairly stable over the next
two weeks.

Signed: RICHMOND ROCKSON

Principal Research Analyst (IES)