Ghana’s Bulk Oil Distributor asks distribution companies to revise their trade credit tenor to reduce fuel prices

The Chamber of Bulk Oil Distributor Companies (CBOD) has urged the Bulk Oil Distribution Companies in Ghana (BDCs) to revise their trade credit tenor to help in the reduction of fuel prices in the country.

Ghana’s Bulk Oil Distributor asks distribution companies to revise their trade credit tenor to reduce fuel prices

According to the chamber, the BDCs should reduce the tenor from the current forward foreign exchange rate from the average 60-day to 30-day forward rate.

The CBOD made the revelation in its Petroleum Price Outlook, which is the price indicator for the first selling window of August 1 to 15, 2019.

The price outlook said the adoption of a 30-day forward rate instead of a 60-day forward rate the CBOD said can reduce pump prices by about 2%. This is expected to help reduce consumer prices at the pump.

The forward forex rate used is the average of the quoted indicative forward forex rate from major oil financing banks adjusted by the covered-interest parity pricing model.

The 60-day forward rate is computed as the average of selected major oil financing banks.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Why do guys still masturbate when they have girlfriends?

Why do guys still masturbate when they have girlfriends?

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

Shika Simu yangu bro, we need you - Eric Omondi begs Eddie Butita

Shika Simu yangu bro, we need you - Eric Omondi begs Eddie Butita

Cooking for Drake, collaboration with Wizkid and other things Tems revealed in a Twitter Q&A

Cooking for Drake, collaboration with Wizkid and other things Tems revealed in a Twitter Q&A

British MP claims she didn't know her flat was owned by the Kenyatta family

British MP claims she didn't know her flat was owned by the Kenyatta family

Mulamwah and girlfriend Sonie welcome a bouncing Baby Girl (Photo)

Mulamwah and girlfriend Sonie welcome a bouncing Baby Girl (Photo)

Diamond Platnumz splashes Sh5.2 Million on new Gold & Diamonds Chain [Video]

Diamond Platnumz splashes Sh5.2 Million on new Gold & Diamonds Chain [Video]

I have not been paid a cent- Jerusalema singer Nomcedo Zikode as she sues Master KG

I have not been paid a cent- Jerusalema singer Nomcedo Zikode as she sues Master KG

Actor Ronald Ndubi ‘Victor Hausa’ confirms relationship with Maria actress Magie

Actor Ronald Ndubi ‘Victor Hausa’ confirms relationship with Maria actress Magie