Stable outlook for pump price across sub-Saharan African countries

Stable outlook for pump price across sub-Saharan African countries

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RIDING on the persistent low price of crude oil and refined product, several sub-Saharan African countries lowered the pump price of refined products in October. Reduction in Ghana has been the steepest of all countries in the region. Price of gasoline has fallen by 32.9 percent from the year high of GHS3.98/litre ($1) in July. The decline was largely driven by low price of imported refined products and some strengthening of the local currency.
Tanzania, Kenya and Namibia who operate the monthly review system all lowered by the pump price of gasoline by 3.93 percent, 3.03 percent and 1.87 percent in November respectively. However, the real impact of the decline is still very low as a result of a slump in general commodity prices that has adversely affected the finances and currencies of most countries in the region.
Analysts do not anticipate a significant change in prices before the year ends. ‘Given the less than optimistic view of a revival in oil price, we do not anticipate any significant change in price for the last month of the year,’ Ecobank said in a research note.
‘Pump price of gasoline in Nigeria is expected to stay at N87/litre ($0.43) till year end. However, continued fuel scarcity in the country, driven by unpaid subsidies to marketers may force a review of gasoline prices early in 2016,’ Ecobank added.

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