COPEC Calls For Fuel Price Reduction

The Chamber of Petroleum Consumers (COPEC) wants Oil Marketing Companies (OMCs) in the country to reduce their ex-pump prices for consumers, to reflect the sustained decline in the global crude oil prices.

According to COPEC, consumers could be benefitting from a reduction of between 10%-32% compared to the two per cent that consumers had been given over the past few weeks.

Portions of a statement from COPEC which cited the  nearly 30% decline in the global oil prices said, “It is our expectation in the coming few days that the various OMCs and the BDCs will ensure the Ghanaian is given nothing but the full benefit of these sustained reductions in fuel prices on the international markets.”

COPEC also indicated that the cedi’s relative stability compared to other trading currencies should warrant a drop in prices.

“Coupled with the steady decline in international oil prices, also is the nominal appreciation of the local currency, the cedi, which had recorded an appreciation of over five per cent from earlier depreciation figures of over 5.85 per dollar to currently trade at below 5.40 per dollar, according to latest BOG figures,” it said.

The concerns by COPEC comes on the back of a report by Bloomberg that price wars between Saudi Arabia and Russia has led to a drop in crude oil prices to about US$28 a barrel as at Monday, March 9, 2020, the lowest in four years.

Meanwhile, COPEC wants Ghana’s price stabilization and recovery levy scrapped, explaining that its continuous imposition is inimical to the consumer.

“The PSRL must be immediately scrapped from the Price Build Up and a more sustainable source of funding be instituted for premix in order that the whooping 16p/litre charge on fuel prices can be dropped permanently to ease the pressure on pump prices immediately forthwith, “we cannot continue to deceive the Ghanaian of a deregulated petroleum pricing environment which is somehow also micromanaged against the very people we expect to bear with when there are increases but some way, somehow deny those same people any reductions when the indications point in that direction,” COPEC indicated.