Ghanaians could soon enjoy another reduction in fuel prices as the Chamber for Bulk Oil Distributors (CBOD) projects a further drop in ex-pump prices in the next pricing window.
According to the Chief Executive Officer of CBOD, Dr. Patrick Ofori, the expected decline is being driven by signs that global crude oil prices may ease in the coming weeks, following indications of a possible agreement between the United States and Iran.
Speaking on the outlook for the petroleum market, Dr. Ofori explained that although crude oil prices are likely to fall, consumers should not expect a dramatic drop.
“Even if prices are going to fall, it will be gradual and not the sharp movements we witnessed when crude jumped from $70, $80, $90 to $100 per barrel,” he said.
He noted that many countries have heavily relied on their strategic oil reserves in recent months, causing stock levels in several storage facilities to decline significantly.
As a result, global traders and refineries are expected to remain active in the market to rebuild inventories, a situation that could keep demand for crude oil relatively strong and prevent prices from falling too sharply.
“There are a lot of storage facilities that have run dry because many countries have been consuming from their reserves. Key traders and refineries will still be in the market to replenish stocks, creating demand for crude,” Dr. Ofori explained.
While global oil prices remain an important factor, he stressed that the strength of the Ghana cedi against the US dollar will continue to play a major role in determining fuel prices locally.
He therefore appealed to the Bank of Ghana to help improve access to foreign exchange and address exchange rate spreads charged by some commercial banks.
“We are appealing to the central bank to look at how banks apply spreads on exchange rates. If we are able to consistently secure forex at around GH¢11.20 to the dollar over the next pricing window, consumers could experience some relief,” he stated.
The projection comes at a time when several Oil Marketing Companies (OMCs) have already reduced fuel prices at the pumps following recent improvements in international petroleum product prices.
If global crude oil prices continue to ease and the cedi remains stable, motorists and businesses could see even more relief in the coming weeks.
