The first pricing-window of August 2024 saw the price of liquid fuels fall at the pumps, marking the first drop since May 2024. Specifically, the price per litre of Gasoline and Gasoil decreased by an average of GH₡0.20, based on performance data local Oil Marketing Companies (OMCs) monitored over the period.
The Institute for Energy Security’s (IES’) computation of the national average price for the three (3) refined petroleum products during the first pricing-window of August 2024 shows Gasoline and Gasoil sold at GH₡14.00 and GH₡14.58 per litre, respectively, while LPG was priced at GH₡15.22 per kilogram (kg).
The IES Marketscan identifies Star Oil, Zen Petroleum, and Benab Oil as the OMCs offering the lowest prices over the last two weeks. World Oil Market Growing instability in the Middle East, coupled with weaker demand from China, has negatively impacted oil prices.
Both Brent Crude and WTI saw further price declines during the first pricing window of August 2024. Although the ongoing geopolitical risks in the Middle East typically provide a bullish driver for oil prices, demand concerns currently outweigh the possibility of supply disruptions.
Analysts note that closely monitoring OPEC+ reactions in the coming weeks is critical to determining the nearterm performance of crude oil. Cumulatively Brent crude traded at a bi-weekly average of $82.13 per barrel, compared to $83.03 per barrel at the start of the window, representing a 1.08% fall in price.
World Fuel Market
Monitoring of the global Standard & Poor’s (S&P) Platts data on petroleum products’ performance in the world fuel market shows that the prices of Gasoline and Gasoil continued to decline in the first pricing-window of August 2024, following earlier low prices recorded at the end of July 2024. However, LPG prices increased during the same period. Published data for the first pricingwindow of August 2024 show Gasoline closed at $794.58 per metric tonne, Gasoil at $722.20 per metric tonne, and LPG at $544.28 per metric tonne. The net changes indicate that LPG prices inched-up by 2.65%, whereas Gasoline and Gasoil prices decreased by 2.83% and 4.46%, respectively.
Local Forex
IES Economic Desk’s tracking of the Ghana Cedi performance on the foreign exchange (forex) market for the first pricing-window for August 2024 show the local currency depreciated by 0.77% in value against the U.S. Dollar. The Ghana Cedi traded at GH₡15.66 after previously trading at GH₡15. 54 at the beginning of the first pricing-window for August 2024.
IES ESTIMATIONS FOR AUGUST 2024 SECOND PRICING-WINDOW
The price performance of Gasoline and Gasoil continued to remain positive, recording price decreases of 2.83% and 4.46%, respectively. In sharp contrast, LPG recorded a price increase of about 2.66%. Additionally, the Ghana Cedi depreciated by 0.77% against the U.S. Dollar. The Institute for Energy Security (IES) projects stability in the prices of all petroleum products under consideration (LPG, Gasoline, and Gasoil), due to the combined effects of the slowed depreciation of the local currency and the international market activities observed in the first-half of August 2024. In other words, petroleum prices will remain stable on the local fuel market for the second-half of August 2024 in the absence of sectorial regulatory and policy disruptions.
Source: www.kumasimail.com
