CBOD PETROLEUM MARKET UPDATE

The CBOD market update is a public interest service rendered by the Ghana Chamber of Bulk

Oil Distributors to keep the public and consumers abreast with trends and key events within

the downstream industry.

Window Review of Products The June 27 to July 11, 2015 pricing window (used to set prices for sales between the 16th and

31st of July) saw a 5.11%, 10.86% and 5.84% drop in the world Market Price of Gasoil, Liquefied

Petroleum Price and Kerosene. Gasoline inched up by 2.54%.

The Gasoline market strengthened this window against all other refined products due to the

tightness in the global complex, with firm Asian demand coupled with a rally in the NYMEX

RBOB futures on the back of low stocks levels in the US. The balance-month Eurobob

gasoline crack rallied $1.20 /barrel to $20.55/bbl, while the front-month EBOB crack swap was

$0.80/bbl higher at $18.00/b.

This reflects the surging demand for Gasoline, characteristic of the summer season in Europe

and the Americas known as the US driving season and the general demand tightness in the

US Gulf Coast.

Looking at the West African market, demand remained limited as uncertainty persisted

about the regulatory framework surrounding Nigerian gasoline imports and subsidies. The

arbitrage from the US Gulf Coast to West Africa was closed, coupled with overall tightness

from Northwest Europe on the back of rising prices and cash differentials for FOB North

West Europe Gasoline.

FOB Price Trend January July 2015

0.00 50.00

100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00 550.00 600.00 650.00 700.00 750.00 800.00

US$

/MT

FOB Price Trend over NPA Pricing Window January - July 2015

Gasoil Gasoline LPG

The CBOD Price Indicators

1. The Indicators

a. XPi: Ex-Refinery Price Indicator b. OTi: Oil Traders Index c. FuFeX30: Fuel Forex Rate (30-Day Forward)

2. What is the XPi? The XPi is an estimate of the EX refinery price at which BDCs may sell petroleum products to oil marketing companies. It is based on the maximum allowable US dollar

indexed price BDCs would have sold petroleum products under the immediate past

regulated regime, and converted in Ghana Cedis at a referenced foreign exchange

rate FuFeX30.

3. Why the XPi? The XPi is a public interest service offered by the CBOD following the price liberalization of the petroleum downstream sector. It is aimed at empowering the

consumer and the public with access to information about petroleum pricing and

trends. It is expected that the XPi will equip consumers and stakeholders to make informed purchase decisions.

4. How is it computed?

The XPi is computed using the referenced world market prices as observed to be usually adopted by BDCs, factoring BDCs suppliers premium per levels approved under the regulated pricing regime and converted into Ghana Cedis using the referenced foreign exchange rate FuFeX30.

XPi = (World Market Price + BDC Suppliers Premium) x FuFeX30 5. What is the FuFeX30?

The FuFeX30 is a 30-day forward forex rate computed using the Covered Interest

Parity Model adjusted by the Ghana Sovereign Bond spread. This will be computed

using the average US Dollar selling spot rate of five major oil financing banks.

6. The Oil Traders Index (OTi) The OTi is an indication of the difference between the average actual traded EX-refinery prices by BDCs and the XPi. This will be represented in percentage terms;

OTi = (BDC prices XPi) x 100% XPi

7. When and how is it published?

The XPi and OTi will be published on the 1st, 8th, 16th and 23rd of every month. It will be circulated in press releases as part of market reports emanating from the CBOD.

Fuel Price Indicators for 16th-22nd July 2015

PRICE COMPONENT PMS AGO LPG KERO

Average World Market Price (USD/MT) 717.25 542.78 350.05 570.20

FuFeX30 (Ghs/USD) 3.4755 3.4755 3.4755 3.4755

XPi (Ghp/Ltr) 214.7587 192.347 173.7924 191.1648

XPi % Change -23.05% -27.82% -25.08% -28.34%

Average World Market Price % Change 2.54% -5.11% -10.86% -5.84%

FuFeX30 % Change -25.26% -25.26% -25.26% -25.26%