The second pricing window period spans from Tuesday, January 16, 2018 till the end of the month.

According to the Institute of Energy Security (IES), the development can be attributed to the increase in crude oil prices, performance of the cedi, among other key pointers.

This will be the first time prices will go up since the reduction in the price stabilization levy for Liquefied Petroleum Gas (LPG) and diesel was announced by the National Petroleum Authority (NPA) in December last year (2017).

The price stabilization levy component for the two products has since been reduced from 10 to 3 pesewas.

This means the total tax component on a litre of diesel has dropped from 1 cedi 16 pesewas to 1 cedi 8 pesewas.

Also, the tax component on a litre of LPG has declined from 54 pesewas to 46 pesewas.

But the Principal Research Analyst at the IES Richmond Rockson tells Citi Business News the increase is expected looking at the current trend in fuel prices on the international market.

“Crude prices have gone up by about six percent. Finished products also went up about six percent. Our cedi has also depreciated and in the last window over the period we were supposed to have a number of increment which has not been done by the OMCs so most of them are complaining that they have already incurred losses. So in this particular window, we foresee that most of them are going to try to chip into margins to be able to make up for it otherwise they will still be making losses” he said.

Most Oil Marketing Companies for the1^st pricing window in January kept their prices unchanged.

This development was largely attributed to the relative stability on the international market.

However, if prices go up by 3 percent, it means a litre each of petrol and diesel could be sold to you at 4 cedis 62 pesewas at the pumps of major OMCs.

On the other hand, be prepared to pay about 4 cedis 71 pesewas at the pumps of some major OMCs if prices are increased by 5 percent.

Richmond Rockson says consumers are likely to pay more at the pumps for the second pricing window with the increase in petroleum prices on the international market.

“Consumers definitely are going to pay more in the next window unless the NPA or OMC’s do something; otherwise, consumers must definitely brace themselves to pay more” he added.

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

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The NPA in a statement explained that, this is “in line with a drop in crude and petroleum prices on the world market, as well as stability in the exchange rate.”

[contextly_sidebar id=”gqAS60LpAFQ0yocbJ8A99ErlSbEKTEgq”]The Authority added that, it had “activated the Price Stabilization and Recovery Levy to stem potential upward adjustment in the price of diesel.”

“The NPA wishes to assure the public of its commitment to monitor the situation in order to ensure the full benefit of the reduction is felt,” the statement further indicated.

Fuel prices hit all-year

In September 2017, it emerged that Ghanaians were paying more for petrol and diesel few months after enjoying fairly low prices.

Figures from the petroleum industry had shown that, prices of the two products at the various fuel stations had hit all time high, with petrol selling at an average of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre, as at the third week of September 2017.

The increase had been attributed to the marginal depreciation of the cedi, as well as increased global crude oil prices due to the floods in the US which affected production at major oil companies.

IES predicts no fuel price increase

The Institute of Energy Securities (IES ) had also predicted  that consumers will not experience any significant price change at the pumps in the first pricing window of December 2017.

The Principal Research Analyst at the IES, Richmond Rockson, who made this prediction in an interview with Citi Business News explained that, despite the fast depreciation of the cedi against the dollar, the effect on petrol prices will be minimal.

“In the next pricing window which is the first pricing window in December, we foresee fuel prices remaining fairly stable, when I say fairly stable what I mean is that, we are not expecting any price change, and even if there will be a change in prices it won’t be significant”.

“The cedi is depreciating at a fast rate even though it is selling around 4 cedis 6 pesewas on the foreign exchange market. The average for the period is 4 cedis 48 pesewas, as compared to the previous average of 4 cedis 41 pesewas”

He explained that, the depreciation of the cedi would reflect in a price change of less than one percent for petrol, and therefore will be insignificant.

“Virtually a depreciation of 1.5 percent. Crude oil prices have remained fairly stable as well, and the difference is less than one percent,” he said.

NPA revises fuel prices downward through Price Stabilization levy

On December 1, the National Petroleum Authority (NPA) also directed all Oil Marketing Companies, and LPG Marketing Companies to use revised prices in the Price Stabilization and Recovery Levy Act to control recent price increases in petroleum products.

This followed a directive from the Ministry of Energy, raising concerns about the recent fluctuations in the prices of petroleum products due to strong political and economic influence from oil producing countries across the world.

In line with the directive, the Authority was expected to revise the cost of the levy which is one major component in the determination of petroleum prices.

By this, the Price Stabilization and Recovery Levy for petrol will remain at 12 pesewas per liter, while diesel and LPG are revised to 3 pesewas per liter from 10 pesewas per liter.

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By: Marian Ansah/citifmonline.com/Ghana

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The long vehicle with registration number GN3009-09 is in police custody pending further investigations.

The seized product is 50,000 litres of diesel valued at GHc213,500.

The driver, Hamza File, is assisting the Bureau of National Investigations (BNI), and the police administration to establish the source of the product.

The BNI has instructed that the vehicle should be transferred to the regional command.

The transporter, Alhaji Amadu used Star Oil Company Limited invoice to perpetuate the illegality.

Citi News‘ reliable sources at Star Oil Company Limited revealed that, the company does not own the said vehicle.

It has also been established that the NPA has disapproved of cross zonal lifting of diesel.

The measure forms part of the NPA’s strive to stop smuggling of contaminated fuel which lately gained media attention.

NPA seizes GHc1.4m smuggled petrol

Officials of the NPA last week impounded 15 truckloads of smuggled petroleum products worth GH¢1.4 million.

Each of the trucks was loaded with 54,000 litres of either petrol or diesel.

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By: Abdul Karim Naatogmah.com/citifmonline.com/Ghana

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According to the Chief Executive Officer of the National Petroleum Authority (NPA), Hassan Tampuli, the price surge could largely be attributed to the recent hurricanes that ravaged the United States of America.

“For the past many years, at this time of the year, prices will normally come down after the summer driving season. In the summer driving season, where there is no winter, people go out of their houses, they go on vacation, crisscrossing their country and then the demand on products increases…it is different this time because of the unfortunate national disaster that we have in the United States, especially, which has led to the diversion of [fuel] products from Europe meant for south, west and central African countries to the Americans,” Mr. Tampuli said on Wednesday at a press conference.

Fuel prices hit all-year-high

[contextly_sidebar id=”poGDKqqKi4t0uMj1m9QGAHEnH0oPmPJQ”]Fuel prices have hit all-year-high in September, with petrol selling at an average price of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre.

Analysts have posited that the surge in fuel prices could be among other things be as a result of crude oil price on the international market, as well as the depreciation of the Ghanaian currency – the cedi.

Reduce taxes on fuel prices

Some have also complained that the numerous taxes on petroleum products, could have led to a surge in prices, and have thus called on government to review them.

But Mr. Tampuli defended the taxes saying they help to stabilize the prices within the country. He also said government does not benefit from the taxes saying they are in the interest of consumers.

Hurricane Harvey, Irma and all in-between

Climate change in recent times led to some massive hurricanes – Harvey, Irma, others —hitting some states in the US.

The storms, which were so violent, were said to have destroyed properties worth millions of dollars. Some US states were cut off from social amenities including electricity due to the storms.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

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Currently, data from the National Petroleum Authority shows that there are about 10 different kinds of taxes and levies on petroleum products.

Speaking on the Citi Breakfast show, a principal research analyst at IES, Richmond Rockson, argued that the adverse effect of the increment in fuel prices on consumers could be minimal if government scraps some of the taxes.

[contextly_sidebar id=”KakJOmtQ4k59VJ0ZF7r4i7EY8UqIstNb”]“The first thing that should go is the special petroleum tax. I don’t think that there is any need for government to impose 15 percent there. There is no point in that. Some of them can also be reviewed; I don’t see why the road fund should be 40 pesewas, it’s too much. The price stabilization and recovery levy must also go, especially when government is passing the cost on to consumers. There is no point keeping that in there as well,” he added.

Current figures from some fuel stations show that, prices of petrol and diesel have hit an all-year high, with petrol selling at an average of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre.

Mr. Rockson attributed the increment on the surge in crude prices on the international market as well as the depreciation of the Ghanaian currency – the cedi.

“When it comes to fuel pricing we know that there are a number of indicators that we all look at – one of the critical things that we look out for is our cedi, thus the exchange rate as compared to the dollar. Over the period, the cedi has been depreciating marginally and from May till date – ten consecutive windows—it’s only one [window] that we had a stable currency. In all the other nine, the cedi depreciated and we’ve been mentioning this every time. As we speak, the average exchange rate is 4.48 pesewes from a previous average of 4.44 pesewes, and this is really troubling because the effect it has on fuel pricing is that, it’s going to push prices up instead of pushing it down.”

He said “crude oil prices have also surged” adding that “as we speak, we are doing about 55 dollars from a previous average of 52 dollars per barrel, a depreciation of about 3%.”

“For a benchmark for finished products for gasoline and gas oil, they’ve also gone up, in this particular window they went up by 14% for gasoline and for gas oil it went up by 8%. This is what has accounted for the increment in this month [September],” Mr. Rockson explained.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Scrap taxes on fuel to reduce prices – Energy Institute appeared first on Citi 97.3 FM - Relevant Radio. Always.

Current figures from the petroleum industry show that, prices of the two products at the various fuel stations have hit all time high, with petrol selling at an average of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre, as at the third week of September 2017.

The Institute of Energy Security (IES) had earlier predicted a 7% increase in fuel prices.

The increase has been attributed to the marginal depreciation of the cedi, as well as increased global crude oil prices due to the recent floods in the US which affected production at major oil companies.

The Principal Research Analyst at the Institute of Energy Security, Richmond Rockson, said “We are expecting prices to rise between seven and ten percent and this will have an impact on consumers.”

“This probably will be the most significant. The cedi also keeps depreciating. After the storm Harvey, refineries were affected so prices will definitely go up,” he added.

Petrol and diesel are the most patronized fuel products in Ghana, and any increase usually affects transport fares and impacts cost of general goods.

Sharp dip

Prior to the sharp surge in the price of fuel in September, data from the National Petroleum Authority (NPA), showed that petrol and diesel only increased marginally between February and March, but dropped significantly between April and July until it gained momentum in August 2017.

Below is an infographic of the price change in petrol and diesel since January:

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By: Godwin A. Allotey & Melvin M. Clottey/citifmonline.com/Ghana
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The post Fuel prices hit all-year-high [Infographic] appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to IES, per their analysis, diesel and petrol are likely to go down by 1.5% and 3.0% respectively on the local market.

“As a result of marginal loss of the Ghana Cedi to the U.S. Dollar, the up to 8.12 % reduction in the prices of finished products on the world market, the 8.10% drop in crude oil price, and the low stock of Diesel in the country; the Institute for Energy Security (IES) can project prices of Diesel and Petrol on the local market to drop between 1.5 and 3.0% for the second Pricing-window for the month of November 2016,” a statement from the Institute stated.

[contextly_sidebar id=”5K8VExi0kbROKsEktJKtDqcy38jK3dqC”]The statement signed by Richmond Rockson, Principal Research Analyst, Petroleum unit at IES observed that over the last two weeks, the average Brent crude price dipped from $51.22/barrel to 47.07, a reduction of 8.10%.

“Today the average Platt prices for Petrol and Diesel is $481.08/metric tonne and $418.81/metric tonne indicating a drop of 7.36% and 8.12% on the two fuels, as compared to $519.32/metric tonne and $454.98/metric tonne recorded last two weeks.”

Fuel prices up by 11%

The Chamber of Petroleum Consumers (COPEC) of Ghana in October announced that fuel prices had gone up by 11%, but the National Petroleum Authority said it was instead 4%.

The Chief Executive Officer of the NPA, Moses Asaga, described the announcement as false, and said it should be disregarded since fuel prices had gone up only by 4 percent.

“What we are correcting is that; the 11percent increase in fuel price is false, and that that is not the situation, the increase has been between 3 and 4 percent,” Mr Asaga added.

Below is the full statement from IES:

LOCAL FUEL PRICES TO FALL BETWEEN 1.5 AND 3.0 PERCENT

REVIEW: FIRST PRICING-WINDOW FOR NOVEMBER 2016

Local Fuel Market

Trading activities within first Pricing-window for the month of November 2016 saw most Oil Marketing Companies losing their market share to Goil, Top Oil, Radiance Oil, Glory Oil and Allied Oil as these OMCs were selling the cheapest fuel on the local market. Shell (Vivo Energy), Total Petroleum Ltd, and Engen Petroleum reduced their prices marginally to compete for market share. Today, an average pump price for Petrol and Diesel is Ghs 3.666 per litre and Ghs 3.663 per litre respectively, indicating an average price drop of about 1.8%. The global gasoline (Petrol) supply glut as against huge supply-gap for Gasoil (Diesel) saw diesel prices at most pump stations being sold as the same price as Petrol and some instance higher than Petrol.

World Petroleum Market Indices

Over the last two weeks, the average Brent crude price dipped from $51.22/barrel to 47.07, a reduction of 8.10% following reports from Energy Information Administration (EIA) and International Energy Agency (IEA)suggesting that the global inventories continue to exceed demand; coupled with Russia and OPEC member countries not making good their word to freeze production.

Today the average Platt prices for Petrol and Diesel is $481.08/metric tonne and $418.81/metric tonne indicating a drop of 7.36% and 8.12% on the two fuels, as compared to $519.32/metric tonne and $454.98/metric tonne recorded last two weeks.

Local Market Index and Inventory

From data obtained from Bank of Ghana, the Ghana Cedi lost marginally against the U.S. Dollar over the first Pricing-window by 0.03% and it is expected to see a further depreciation (marginal though) as the Ghanaian general elections draws closer.

Combined stock of Petrol and Diesel held in-tank and on vessels offshore dropped from 445 million litres to 318 million litres, capable of ensuring 3-weeks supply of Diesel and 7-weeks supply of Petrol to meet national demand.

Today, Petrol and Diesel stock in-tank and offshore stands at 195 million litres and 123 million litres respectively.

PROJECTIONS FOR NOVEMBER 2016 FIRST PRICING-WINDOW

As a result of marginal loss of the Ghana Cedi to the U.S. Dollar, the up to 8.12 % reduction in the prices of finished products on the world market, the 8.10% drop in crude oil price, and the low stock of Diesel in the country; the Institute for Energy Security (IES) can project prices of Diesel and Petrol on the local market to drop between 1.5 and 3.0% for the second Pricing-window for the month of November 2016.

Signed: RICHMOND ROCKSON

Principal Research Analyst, Petroleum Unit – IES

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By: Godwin A. Allotey/citifmonline.com/Ghana

The post Fuel prices likely to go down soon – Energy Institute appeared first on Citi 97.3 FM - Relevant Radio. Always.

With 31% of votes counted, the ANC had 58.7% of the vote followed by the Democratic Alliance on 27.7%.

The ANC is widely expected to return to power although analysts say anything less than 60% of the vote for the party will be seen as a major upset.

The Economic Freedom Fighters (EFF) party was in third place with 4.2%.

The electoral commission said voting passed peacefully in most areas.

Turnout was just over 72%, with about 25 million people registered to vote in 22,000 polling stations across South Africa.

The elections are the first since the death in December of Nelson Mandela – the country’s first black president – and mark 20 years since the end of white-minority rule.

Those born after the end of apartheid in 1994 were able to cast their ballots for the first time, although only a third of those entitled to do so had registered to vote.

An ANC victory would return President Jacob Zuma for a second five-year term. In the last election in 2009, the ANC saw a drop in support, polling 66% of the vote.

Speaking as he cast his vote on Wednesday, Mr Zuma said he thought “the results will be very good”, but added that the campaign had been “very challenging”.

The party emerging as the ANC’s main challenger is the Democratic Alliance (DA) – a liberal pro-business party, led by anti-apartheid activist Helen Zille, which is trying to make inroads into the black electorate.

The EFF, launched last year by former ANC youth leader Julius Malema, hopes to get its first parliamentary seats with its campaign for nationalising the mines and the forced redistribution of farmland.

Source: BBC

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