Business News of Thursday, 15 September 2016
Prices of fuel products are expected to remain steady in the second fuel pricing window which begins on Friday, September 16, the Principal Research Analyst at the Petroleum Unit of the Institute for Energy Security (IES), Richmond Rockson, has predicted.
This the IES believes is due to “low national fuel inventory, minimal reduction in Platts and Brent crude prices, and the fair stability of the Ghana cedi against the U.S. dollar”.
IES is also entreating Oil Marketing Companies (OMCs) to, as a matter of principle, effect any reductions which may be necessary in the future with the same speed of light as they did when it became necessary to increase prices in the previous window.
Explaining the details of the market performance within the period of the first pricing window from September 1 to September 15, the institute revealed that “by the third day into the first pricing-window for September 2016, petrol and diesel prices had risen by 5.3% and 7.6% respectively”.
They explained that OMCs fed on the news of low stock of diesel in the country to “overshoot diesel prices way above logical level”.
“This agenda was ably led by Shell Petroleum and Quantum Petroleum on the second day into the window, causing other OMCs to follow sync. Together with Allied Oil, Total Petroleum, and Petrobay, Shell and Quantum were forced to reduce their prices by an average of 1.02 per cent on the eighth day of the window as a result of low patronage by consumers – spiralling another price war,” he continued.
As of September 15, the average price for petrol and diesel was GHS3.625 and GHS3.608, suggesting a price increase of 4.33 per cent and 6.86 per cent respectively over the window.
“Radiance Oil maintains the top spot on the IES Top-10 Chart as the OMC selling the cheapest petrol and diesel on the local market,” the statement revealed.