Fuel Prices Must Go Down – COPEC

The Chamber of Petroleum Consumers Ghana, COPEC, says it expects prices of petroleum products at the pumps to go down further after some Oil Marketing Companies reduced prices by about seven percent.

Following a drop in global crude oil prices and the relative stability of the cedi for about two months now, there have been calls by the Chamber of Petroleum Consumers and other interest groups for the OMCs to reduce their prices in line with the petroleum product pricing and deregulation policy.

COPEC says the reduction for now is insignificant, and they are hopeful the OMCs will gradually reduce their fuel prices to about 15 percent as global crude oil prices drastically dropped by about 30 percent.

Speaking in an interview, the Executive Director of COPEC, Duncan Amoah, insisted that the price can further go down to bring the needed relief to consumers.

“It will be disappointing if we do not see a further reduction in the days ahead. What we had expected would have been a minimum 10% reduction. Some also insist that the spike will hurt some of the dealers if they were to go ahead and reduce it drastically. So, it is our expectation that as we have seen about 5% – 7% reduction now, we should be able to see another 5% reduction in the coming few days,” he said.

COPEC maintains that the cedi’s relative stability compared to other trading currencies and the global drop in crude oil prices must count for something.

The Institute of Energy Security (IES), had however predicted a reduction of about 5 to 8 percent at the pumps, whiles the National Petroleum Authority, NPA, also said per its calculation, prices were to go down by 15 %.

Stop interfering in fuel price movement – OMCs tell stakeholders

Meanwhile, the Association of Oil Marketing Companies, has advised against what it calls undue interference in the pricing decisions of its members.

Stop interfering in fuel price movement – OMCs tell stakeholders

The Association of Oil Marketing Companies, has also advised against what it calls undue interference in the pricing decisions of its members.

In an interview with Citi Business News, the CEO of the Association of Oil Marketing Companies, Kwaku Agyeman Duah, said the members will only implement decisions that will make them stay competitive.

“When it is going up, we will also go up; but when it was going up last year, we were not able to go to the magnitude of the increment. We were always coming down. It was about 2% or 3% short of what the percentage is because again the drivers of competition also come in, and the fact that people are looking at the consumer. When it is going up you need to also get the money to go and buy the same quantum; and if they are going down and we were to price properly, there will not be any need for that,” he said.

World price slump

On Monday, March 9, 2020, oil prices saw its lowest drop since 1991.

This was after Saudi Arabia started a price war with Russia by slashing its selling prices and pledging to unleash its pent-up supply onto a market reeling from falling demand because of the coronavirus outbreak.

Prior to this huge slash, crude prices had been relatively stable. By this, prices are generally expected to go down significantly at the pumps, to ease pressure on consumers.Brent crude futures fell by as much as $14.25, or 31.5%, to $31.02 a barrel. That was the biggest percentage drop since Jan. 17, 1991, at the start of the first Gulf War and the lowest since February 12, 2016.

It was trading at $35.75 at 0114 GMT.
U.S. West Texas Intermediate (WTI) crude fell by as much as $11.28, or 27.4%, to $30 a barrel. That was also the biggest percentage drop since the first Gulf War in January 1991 and the lowest since February 22, 2016. It was trading at $32.61.