Chamber of Petroleum Consumers keeps pressurizing oil companies to reduce fuel prices as global crude prices drop again

The Chamber of Petroleum Consumers (COPEC) is demanding that Oil Marketing Companies (OMCs) in Ghana reduce their prices at the pump to reflect the continuous decline in global crude oil prices.

A motorist holds a fuel pump at a Gulf petrol station in London,  file. REUTERS/Luke MacGregor/File Photo

A statement released by COPEC stated that the global fall in crude oil prices shows that OMCs could reduce their prices at the pump by about 10%-32% compared to the 2% reduction over the past few weeks.

“It is our expectation in the coming few days that the various Oil Marketing Companies 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 argued that the cedi’s relative stability against its major 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 has recorded an appreciation of over 5% from earlier depreciation figures of over 5.85/$ to currently trade at below 5.40/$ according to latest BOG figures.”

This is coming after Bloomberg reported that the price wars between Saudi Arabia and Russia have caused a drop in crude oil prices to about $28 a barrel as of Monday, (March 9, 2020), the lowest in four years.

Meanwhile, COPEC is demanding that Ghana’s price stabilization and recovery levy is scrapped. The statement said that its continuous imposition is not helping 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 someway somehow deny those same people any reductions when the indications point in that direction,” COPEC indicated.

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