Fuel prices likely to go up from 1st -15th October,2019. - Zongo Link Multimedia

Fuel prices likely to go up from 1st -15th October,2019.

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Petroleum Products (Gasoil & Gasoline) prices in the domestic market are likely to go up in the next pricing window effectively 1st to 25th of October, 2019.

These expected increments correlates to the current happenings in the international crude market vis-a-vi the attacked on Saudi’s second largest oil refinery by the Houthis rebels in Yamen.

 The attacked cut-down global fuel supply by 5% (about 5.7 million barrel per day). This resulted in a shape increment of international oil prices (both crude and refined products) by 19% and averaging now at 7%.

The head of analytics at Interfax Energy in London said, “The damage to facilities at Abqaiq and Khurais appears to be extensive, and it may be weeks before oil supply are normalized.”

The current average platt for Gasoil is $573/MT which is been used to price in the current domestic window (16th to 30th September,2019) has reached $609/MT (6% increment) as at the close of Friday, 20th September, 2019. Aside the upsurge in international oil prices, our domestic currency against the US dollar is not performing well.

The cedi is now trading at 5.51 to a dollar compared to 5.45 average used by some of the Bulk Oil Distribution Companies (BDCs) in this current window. The average ex-refinery price for Gasoil as quoted by the Bulk Oil Distribution Companies (BDCs) to the Oil Marketing Companies (OMCs) is GHp 3.1/litre which is expected to hit GHp 3.20/litre.

 This expected increment of the Ex-ref will definitely trickle down to the pump prices. In order to mitigate this pending increment, the government can remove the current price stabilization and recovery margin.

Petroleum Intelligence(P.I)

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