Fuel prices in Ghana are expected to decline modestly starting January 16, with petrol prices projected to decrease by approximately 3% and diesel by around 1%, the Chamber of Petroleum Consumers (COPEC) said Tuesday.
The forecast hinges on the performance of the Ghanaian Cedi against major currencies. While international oil market benchmarks point to lower prices, COPEC’s Executive Secretary, Duncan Amoah, warned that fluctuations in the Cedi’s value would be a crucial factor in determining the final prices. Some markets have reported a stronger Cedi, while others show continued depreciation.
In addition to the anticipated drop in petrol and diesel prices, liquefied petroleum gas (LPG) prices are expected to rise by 3%. The price adjustments come after Oil Marketing Companies (OMCs) such as GOIL and Total raised fuel prices in the first pricing window of January.
The projections follow the Bank of Ghana’s successful forward auction on January 14, in which $20 million was allocated to Bulk Oil Distribution Companies (BDCs) in an effort to stabilize the exchange rate and manage foreign exchange reserves. Despite this, Amoah expressed concern that the amount is insufficient to meet the needs of the market, particularly for petroleum product imports.
“Current foreign exchange allocations are far below what is needed,” Amoah said. “The Bank of Ghana’s $50-$100 million per auction is inadequate. A more sustainable program—likely in the range of $400 million to $500 million—is essential to support the BDCs and stabilize the Cedi effectively.”
Source:TheDotNews