Ghanaian consumers are expected to enjoy significant relief at the pumps from June 16, with petrol, diesel and liquefied petroleum gas (LPG) prices projected to decline during the second pricing window of June.
According to the latest pricing outlook released by the Chamber of Oil Marketing Companies (COMAC), petrol is set to register the steepest reduction, with prices expected to fall by as much as 9.31 percent. If fully passed on to consumers, a litre of petrol could retail at approximately GH¢14.72, marking one of the sharpest fuel price declines recorded in recent months.
Diesel prices are also expected to ease, with some oil marketing companies likely to sell a litre at around GH¢17.02, particularly those sourcing products on credit arrangements through Bulk Oil Distributors. LPG users could see a modest reduction as prices are projected to decline to about GH¢17.20 per kilogram.
Industry analysts note that fuel prices could have fallen even further were it not for the recent weakening of the cedi. COMAC reported that the local currency depreciated from GH¢11.59 to GH¢11.80 against the US dollar during the review period, representing a loss of about 2.45 percent.
The National Petroleum Authority (NPA) has meanwhile revised downward the benchmark price floors for the June 16 to June 30 pricing window. Petrol’s price floor has been reduced from GH¢15.20 per litre to GH¢13.39 per litre, while diesel’s benchmark floor has been lowered from GH¢15.49 to GH¢15.11 per litre.
The regulator has directed all industry players to adhere to the new benchmark floors, effectively preventing fuel retailers from selling below the approved minimum prices. However, market observers believe intense competition among major oil marketing companies could see some operators, including GOIL and Star Oil, pricing products close to the newly established floors.
COMAC attributed the anticipated reductions largely to declining crude oil prices and lower prices of refined petroleum products on the international market. Crude oil prices are estimated to have fallen from about US$110 per barrel to US$97 per barrel during the period, representing a decline of roughly 12 percent.
The drop in global oil prices has been linked to weaker demand from China, increased crude exports from the United States, and continued releases from strategic petroleum reserves by member countries of the International Energy Agency.
Prices of refined petroleum products have also experienced substantial declines. COMAC estimates that international LPG prices fell by nearly 20 percent, while petrol and diesel prices declined by 15.21 percent and 10.17 percent respectively.
Industry players say the outlook for fuel prices could improve further in the coming weeks following reports of progress toward resolving tensions in the Middle East. A sustained easing of geopolitical risks could support additional reductions in crude oil and refined product prices, creating further relief for consumers and businesses alike.
Source: businesspostonline
