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“An analysis of the indicative market prices for diesel and gasoline indicates that both diesel and gasoline are currently sold at an average of 5.11 GHS per liter, compared to previous figures of around 4.70 / liter a December ending at some pumps, although others also quote slightly higher than market averages. “
“These current prices are likely to experience increases of between 12 and 24 pesewas even before March 1, due in large part to price increases in the international market,” COPEC said.
Read the full statement from the Ghana Chamber of Petroleum Consumers (COPEC) below:
FUEL PRICES WILL RISE AGAIN BY 2-4%
REMOVE PRICE STABILIZATION NOW TO CUSHION THE EFFECTS OF THE INTERNATIONAL MARKET PRICES AND THEIR IMPACT ON THE PRICES OF PUMPS.
International oil prices for both crude and refined oil have soared by more than 12% from around $ 470 / mt to $ 512 / mt, representing a difference of around $ 42 / mt for both gasoline and diesel.
Crude oil has gone from $ 59.57 / barrel (Brent) as of February 20 to $ 67 / barrel as of today, February 25, 2021, due in large part to the recovery of the world economy from the harsh effects of the Coronavirus pandemic, as well as the energy crisis in Texas, which has seen a reduction in oil production of 4 million barrels per day.
This imitation translates to roughly 40% of the United States’ oil production along with continued cuts by the Organization of the Petroleum Exporting Countries (OPEC) of around 9.2 million barrels per day of oil supplies due to a projected decline in global demand since the second quarter. . (Energy Information Administration, 2020; Oil Moderno; momr.opec.org).
These increases in oil prices (Brent) translate into a variation of approximately $ 41 or an increase in the prices of finished products (both gasoline and diesel) on the Platt trading platform, effectively increasing BDC prices. or the position of the importers, which is having a big impact on the various oil trading companies that are also likely to pass these increases on to local pump prices even before the first price window next month starting Monday 1 March 2021.
These increases in international markets translate to around 21p / liter at local pumps and are likely to be reflected in Ghana’s oil consumer in the next few hours, even before the start of the next price window in March.
However, the cedi in the period has performed quite well, appreciating against the dollar, although nominally. The Bank of Ghana, effective February 16, pegged its interbank exchange rate from the Ghana Cedi to the US dollar.
An analysis of the indicative prices of diesel and gasoline in the market indicates that both diesel and gasoline are currently sold at an average of GHS5.11 per liter from previous figures of around 4.70 / liter as of December ending in some pumps , although others also quote a little. higher than market averages.
These current prices are likely to experience increases of between 12-24 pesewas even before March 1, due in large part to price increases in the international market.
It is our estimate that pending increases could be avoided through the application or downward revision of the Price Stabilization and Recovery Tax on the accumulation of prices between 12-16p / liter to cushion the market in order to potentially prevent these possible increases. to reflect on our local pumps in the short term.
Ghana’s pumps over the last 2 months have seen around 4 different points of increases of around 9% cumulative variance, and our expectation was that pump prices would moderate down from March.
However, these price increases appear to be far from over due to the current situation in Texas and the overwhelming heating requirements for crude oil and diesel around the world, as prices continue to rise day by day.
We understand from consultations with a good number of Petroleum Trading Companies (OMCs) that a downward revision of the Price Stabilization and Recovery Tax will likely dampen the market and prevent any further increases, although it would not absorb all of it. . since some market players have already started to increase pump prices due to the pressures currently presented by price increases in the world market.
In addition, we ask the Government and the Ministry of Energy to ensure that the local refinery in Tema returns to productivity as soon as possible to ensure the safety of oil, as geopolitical developments around the world appear quite turbulent and could get worse by the end of the second . bedroom.
Signed.
Duncan amoah
Executive Secretary
