Market

Fuel prices to fall by 8%

Fuel prices from Monday, March 16, 2020, are expected to fall by between 5 to 8 percent, which would bring some relief to consumers but whether commercial vehicle operators would reduce fares is another matter to fight over another day.

Even though crude prices collapsed on the world market a week ago, by falling more than 30 percent in a day of trading, the cedi came under pressure and some of the gains made have seen significant erosion which influences OMCs decision to reduce prices by as much as 8 percent only, even though the market is expecting a bigger drop in prices.

When crude prices plunged as a result of a battle between Russia and Saudi Arabia, Civil Society Organisations, politicians and other industry players called for a significant drop in fuel prices but then the local currency was feeling some pressures and has fallen by 2.62 percent against the U.S. Dollar to currently trade at an average price of GH¢5.48 to the U.S. Dollar over the period under review.

Background

When prices of crude started falling due to coronavirus pressures, OMCs hardly budged even though the local currency has risen by more than 5 percent against the dollar.

The Institute for Energy Security (IES), a think-tank, noted in a conversation that in the last pricing window in February, prices of petroleum products on the local market remained largely stable.

As a result, the national average price of fuel per litre at the pump is pegged at GH¢5.36 and GH¢5.38 for Gasoline and Gasoil respectively. The Institute’s price projection seems to be at variance with the estimation of the National Petroleum Authority (NPA), as it takes cognisance of the huge stockpile of finished products before the Monday international price crash, as well as the significant fall in the value of the Cedi against the US Dollar.

The National Petroleum Authority (NPA), earlier this week, said per its calculation, fuel prices at the pumps may go down by 15 percent on March 16, which is the start of the next pricing window.

Chief Executive Officer of the NPA, Hassan Tampuli, said although prices are due to go down, due process must be followed. He explained that the deregulation policy allows for two window periods within which price adjustments are to take place and that the next price window is March 15th, at which time the changes would be effected by the OMCs.

 

Source: thebftonline.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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