A marginal decrease in the world market price for refined petroleum products is likely to impact positively on Ghanaian consumers by 15 per cent or more this week.
The Chief Executive Officer (CEO) of the Ghana Chamber of Bulk Oil Distributors (CBOD), Senyo Hosi, told the state-run Daily Graphic the performance of the cedi was another motivation for the reduction.
?One good news is the performance of the cedi against other major foreign currencies, especially the dollar,? he said in an interview.
?We wish to assure consumers that the prices of the products will continue to be reviewed downwards so long as the cedi rises and the world market price of refined products reduces,? Hosi said.
The CBOD, he stated further, ?will henceforth publish the indicative prices of petroleum products every two weeks ? subject to the world market price and macroeconomic indicators?.
He said the CBOD was taking steps to prevail on the National Petroleum Authority (NPA) to abridge the time frame for the announcement of new prices for petroleum products.
In accordance with the current schedule, prices are to be reviewed every two weeks but Hosi said that arrangement did not make it possible for bulk oil distributors (BDCs) to lower prices on a daily or weekly basis when prices dropped or increased.
Energy Minister Emmanuel Armah-Kofi Buah told the daily in an interview there could not be any justification for fuel prices to remain the same, given the positive performance of the cedi on the forex market.
?Given the recent significant appreciation of the cedi against the dollar, I expect a corresponding reduction in the prices of petroleum products in the next pricing window,? he said.
Petroleum prices have gone up by more than 25 per cent in the past four months.
The price of crude oil fell below 51 US dollars a barrel last Tuesday after hovering round the 60 dollars level.
As of Friday July 10, 2015, the dollar was being sold for 3.4596 cedis at the interbank market and being purchased for 3.4630 cedis.
The cedi has gained 4.27 per cent in its value since February 2015.
The depreciation of the cedi against the major foreign currencies, especially the dollar, was the main cause of the increment because most of the products are imported.
The last increment of close to 15 per cent was recorded on July 1, 2015 that shot up transport fares to the chagrin of motorists and passengers.
However, the past few weeks have seen a steady appreciation of the cedi.
The Ghana government, with effect from June 16, 2015, decided to wash its hands off the pricing of petroleum products.
This means that BDCs and oil marketing companies (OMCs) will now have the liberty to price their own products.
The strategy, which is the final phase of Ghana?s petroleum downstream deregulation policy, will result in the cessation of subsidies on fuel products. Enditem