Fuel Prices to Fall From July 16
Motorists can expect some relief at the pumps from July 16, as petroleum prices are projected to decline during the second pricing window of the month, despite ongoing geopolitical tensions in the Middle East.
The Chief Executive of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, said the anticipated reduction is supported by prevailing trends in the international petroleum market and current market projections.
He explained that while uncertainty remains due to developments in the Middle East, the outlook for the upcoming pricing window remains favourable.
“Even if things should get out of hand, we may keep prices unchanged for the second pricing window of this month.”
Dr Oppong disclosed this during a media interview.
He noted that the relative stability of the Ghana cedi over the past month has also strengthened the case for lower fuel prices.
“Another development that has helped with this projection is that the cedi has been fair over the past one month, and this could see prices go down by some significant margin,” Dr Riverson added.
Responding to concerns that oil marketing companies are often slow to pass on favourable market conditions to consumers, Dr Oppong rejected the assertion, insisting that the industry would respond appropriately should the projected price reductions materialise.
He also defended the recent review of the industry’s price floor regime, describing it as a necessary intervention that had received broad industry backing.
“This regulatory action has indeed gone a long way to save many players in the industry.”
Last month, the National Petroleum Authority (NPA) revised downward the minimum fuel price thresholds for the June 16 to June 30 pricing window. The price floor for petrol was reduced from GH¢15.20 per litre to GH¢13.39 per litre, while diesel’s minimum price fell from GH¢15.49 per litre to GH¢15.11 per litre.
The regulator directed all oil marketing companies to comply with the revised pricing framework, prohibiting the sale of petroleum products below the approved minimum prices.
The adjustment came after the government ended its temporary intervention programme that had been introduced to cushion consumers against the impact of rising international crude oil prices.
According to COMAC, the price reductions implemented during the first pricing window of July were largely driven by lower crude oil prices and declining refined petroleum product prices on the international market.
The chamber attributed the easing in global oil prices to weaker crude demand from China, record levels of oil exports from the United States and continued releases from strategic petroleum reserves by member countries of the International Energy Agency. With international oil prices remaining relatively subdued and the cedi maintaining its recent stability, industry players expect the next pricing window to deliver further relief for consumers, barring any significant escalation in global energy markets.
