The prices of major petroleum products at the pumps are expected to be reduced by 15 percent or more effective Thursday July 16 following the cedi’s sharp appreciation against the dollar.
Mr. Senyo Hosi, Chief Executive Officer (CEO) of the Ghana Chamber of Bulk Oil Distributors (CBOD), said the upcoming price reduction was due to the marginal decrease in the world market price for refined petroleum products.
Since the introduction of the deregulation policy, prices of petroleum products, have been reviewed twice within a month and have increased by 18 percent after the two adjustments.
Factors that contribute to the pricing of petroleum products are the ex-refinery price, profit margin, exchange rate and fourteen taxes and levies charged by government.
The local currency has since June 30 recorded over 25.3 percent gain on the dollar, while the ex-refinery products have seen a 10 percent reduction.
Chief Executive Officer of the Ghana Chamber of Bulk Oil Distributors, Senyo Hosi, said petroleum products would be sold to the oil marketing companies at a discount which must reflect a reduction of 15 or more at the pumps.
"As a result of the exchange rate and some marginal changes also on the world market, there is a strong case and expectation that the prices should reduce at the next review. The reduction could be 15% or more".
Meanwhile, the Chief Executive Officer of the Oil Marketing Companies (OMC), Kwaku Agyemang-Duah said consumers may enjoy a continuous downward review of the prices of petroleum products if the cedi remains stronger against the dollar and other currencies.
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