The institute explained that unless the government took deliberate steps to ensure fair and healthy competition among the oil marketing companies (OMCs), fuel prices were likely to go up in the country.

The Principal Research Analyst of the IES, Mr Richmond Rockson, in a press release issued on August 15, cited the consistent depreciation of the local currency, as well as low stock levels, as a major factor resulting in the price hike.

“Taking into consideration the upward adjustment in Brent crude oil price, as well as the prices of finished products on the international market, the depreciation of the Ghana cedi and stock levels in-country, the IES projects fuel prices to go up again on the local market,” he said.

Local fuel market performance

He stated that for the first pricing-window in August 2017, the local fuel market recorded an upward adjustment in prices at the pump, as had been anticipated in the previous review.

That, he said, was largely attributed to the introduction of the long-awaited new fuel standards announced by the National Petroleum Authority (NPA) in May 2017, which finally took effect on August 1, this year.

“The IES can confirm that 50ppm fuels are being sold by a number of OMCs, as the regulator enforces the new directive. Gasoline (petrol) and gasoil (diesel) recorded an average price change of 4.48 per cent, with the average prices of gasoline and gasoil going for GH¢3.96 per litre and GH¢3.94 per litre, respectively.”

He observed that the IES market scan could confirm that Lucky Oil, Compass Oleum, Frimps Oil, Puma Energy and Sky Petroleum were selling the lowest priced fuel at the pump.

World oil market prices

Figures from the international fuel market show that Brent crude price continues to rise. From a previous average price of $49.38 per barrel to a current average of $52.19 per barrel, a price change of 5.67per cent is recorded.

This is as a result of OPEC’s curbing of supply to drive prices upwards, and US inventory falling.

According to Standard and Poor’s Platts, gasoline and gasoil prices shot up again for the period under review.

Gasoline recorded an upward change of 6.08 per cent from $519.50 per metric tonne, while gasoil recorded a change of 7.17 per cent, moving to $484.88 per metric tonne from a previous of $452.45.

Local forex and fuel stock

Figures from the banking sector suggest the US dollar strengthened further against the Ghana cedi, as the local currency depreciated marginally by 0.5 per cent to close at GH¢4.41, from a previous average of GH¢4.39.

The combined stock of gasoline and gasoil in the country has increased slightly from the previous quantity of 189 million litres.