No Result
View All Result
Friday, June 9, 2023
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Govt aims to transform fishing industry with new aquaculture centre

    Maiden Ghana Automotive Summit set for June 27

    Govt issues one-month ultimatum for merchant subscribers to register SIMs

    Govt committed to prioritizing gender mainstreaming in energy policies – Herbert Krapa

    #CitiBusinessFestival: Go digital to increase customer reach – Businesses told

    GRA apprehends shop owners at Achimota for tax infractions

    Telcos, BoG to collaborate to retrieve locked funds on MoMo accounts – Ursula

    Unlock the full potential of mining, energy sectors for domestic industrialization – Abu Jinapor

    Update your records or have your names expunged – ORC tells businesses

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Telcos, BoG to collaborate to retrieve locked funds on MoMo accounts – Ursula

    Update your records or have your names expunged – ORC tells businesses

    Ghana is the best destination for investment in West Africa – Bawumia

    African leaders urged to push for electronic cars over combustible automobiles 

    Modify old trade conventions to favor local printing firms – AGI tells govt

    Publish gold-for-oil policy document to improve transparency – Dr. Manteaw

    Re-consider computation of VAT for local industries- AGI tells govt

    IMF proposes acquisition, mergers of banks to mitigate financial sector instability

    Ghana and Côte d’Ivoire partner to tackle cocoa smuggling

  • TECHNOLOGY

    #CitiBusinessFestival: Go digital to increase customer reach – Businesses told

    #CitiBusinessFestival: Trust ecosystem needed to minimize e-commerce fraud – Benedict Bentil

    Citi Business Festival: Forum on Digital Economy comes off today

    Citi Business Festival: 8 pillars of digital economy by TechGulf’s CEO

    Cyber Security Authority mandate critical to country’s development – Joseph Cudjoe

    MTN shareholders given choice to convert dividend or take cash

    Ghana gets $300 million from US to build first-of-its-kind data center

    Telcoms industry players urged to partner government to promote clean energy transition

    Dominion University To Partner With USA Organisations To Set Up Centre Of Excellence For Artificial Intelligence

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    WTO Chief urges African governments to increase trade, agric investment

    Mining propels Ghana to beat growth estimates in fourth quarter

    BoG pushes for improvement in IMF’s lending framework to boost continent’s access to resources

    Foreign exchange: Several African countries have a shortage of US dollars – why this happens and how to fix it

    Ghana and South Africa urged to leverage on AfCFTA to boost bi – lateral relations

    Silicon Valley Bank crisis: What led to stock crash, what lies ahead?

    Medical devices market projected to expand by $ 7.1 billion by close of year

    African Union adopts Africa Prosperity Dialogues AfCFTA action plan

    Third World Network Africa urges Africans to be strategic about AfCFTA

  • FEATURES
  • Videos
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Govt aims to transform fishing industry with new aquaculture centre

    Maiden Ghana Automotive Summit set for June 27

    Govt issues one-month ultimatum for merchant subscribers to register SIMs

    Govt committed to prioritizing gender mainstreaming in energy policies – Herbert Krapa

    #CitiBusinessFestival: Go digital to increase customer reach – Businesses told

    GRA apprehends shop owners at Achimota for tax infractions

    Telcos, BoG to collaborate to retrieve locked funds on MoMo accounts – Ursula

    Unlock the full potential of mining, energy sectors for domestic industrialization – Abu Jinapor

    Update your records or have your names expunged – ORC tells businesses

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Telcos, BoG to collaborate to retrieve locked funds on MoMo accounts – Ursula

    Update your records or have your names expunged – ORC tells businesses

    Ghana is the best destination for investment in West Africa – Bawumia

    African leaders urged to push for electronic cars over combustible automobiles 

    Modify old trade conventions to favor local printing firms – AGI tells govt

    Publish gold-for-oil policy document to improve transparency – Dr. Manteaw

    Re-consider computation of VAT for local industries- AGI tells govt

    IMF proposes acquisition, mergers of banks to mitigate financial sector instability

    Ghana and Côte d’Ivoire partner to tackle cocoa smuggling

  • TECHNOLOGY

    #CitiBusinessFestival: Go digital to increase customer reach – Businesses told

    #CitiBusinessFestival: Trust ecosystem needed to minimize e-commerce fraud – Benedict Bentil

    Citi Business Festival: Forum on Digital Economy comes off today

    Citi Business Festival: 8 pillars of digital economy by TechGulf’s CEO

    Cyber Security Authority mandate critical to country’s development – Joseph Cudjoe

    MTN shareholders given choice to convert dividend or take cash

    Ghana gets $300 million from US to build first-of-its-kind data center

    Telcoms industry players urged to partner government to promote clean energy transition

    Dominion University To Partner With USA Organisations To Set Up Centre Of Excellence For Artificial Intelligence

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    WTO Chief urges African governments to increase trade, agric investment

    Mining propels Ghana to beat growth estimates in fourth quarter

    BoG pushes for improvement in IMF’s lending framework to boost continent’s access to resources

    Foreign exchange: Several African countries have a shortage of US dollars – why this happens and how to fix it

    Ghana and South Africa urged to leverage on AfCFTA to boost bi – lateral relations

    Silicon Valley Bank crisis: What led to stock crash, what lies ahead?

    Medical devices market projected to expand by $ 7.1 billion by close of year

    African Union adopts Africa Prosperity Dialogues AfCFTA action plan

    Third World Network Africa urges Africans to be strategic about AfCFTA

  • FEATURES
  • Videos
No Result
View All Result
Citi Business News
No Result
View All Result

OMCs reject calls for reduction in fuel cost to reflect global crude prices

bycitibusinessnews
February 27, 2020
in Oil And Gas, Top Stories
Chief Executive Officer of the Association of Oil Marketing Companies Kwaku Agyeman Duah.

Chief Executive Officer of the Association of Oil Marketing Companies Kwaku Agyeman Duah.

Share on FacebookShare on TwitterShare on Whatsapp

The Association of Oil Marketing Companies is urging restraint among some industry watchers and analysts who are demanding a reduction in prices to reflect the downward trends in global crude oil prices and the relative stability of the cedi.

According to the CEO of the Association, Kwaku Agyeman Duah, the reduction can only be felt across the board when the OMCs are able to recoup their investments.

The factors that affect fuel pricing in Ghana include; the cedi’s stability, global oil prices as well as tax components and margins of OMCs that constitute the price build-up of a litre of fuel.

ADVERTISEMENT

Global developments such as the Coronavirus outbreak in China, has led to a drop in demand for crude. This has also contributed to the drop in the price of the commodity as data from Bloomberg shows that as at Wednesday afternoon, February 26, 2020, a barrel of crude sold at 49 dollars, 51 cents.

Again, on the same Wednesday, the local currency had witnessed relative stability considering the fact that it recorded a year to date depreciation of 3%, per information from the inter-bank foreign exchange market.

The various tax components, about seven of them, also add up to the price. This includes the price stabilization levy which is triggered when prices drop on the global market. Currently, this is pegged at 12 pesewas per litre of petrol and ten pesewas per litre of diesel.

But the rate of reduction per OMC is largely dependent on how these three factors independently impact price margins.

Speaking to Citi Business News, the CEO of the Association of Oil Marketing Companies, Kwaku Agyeman Duah, further explained the reasons accounting for a seeming delay in lower prices across board.

“Hitherto, there was no comment about it, we were sweating under diesel, diesel price was so high that the price of diesel we bought sometime ago wasn’t the actual price. We had to somehow subsidize it and we have not recovered. So the rate at which the diesel price was going up that’s not what we actually increased. That is why when we are coming down, you do not expect to have a proportionate for the price because that is where we also recover. The question you may ask is how long will this recovery  last and that depends on the market forces” he explained.

He argued that the price deregulation regime meant that players are allowed to set market prices without any regulatory interference.

Citing the high cost of credit for some members of the Association, Mr. Agyeman Duah was however confident that consumers should be able to enjoy a reduction in fuel prices if all other factors; the global reduction in prices and relative currency stability continue for a longer period of time.

Related Posts

Top Stories

Govt aims to transform fishing industry with new aquaculture centre

bycitibusinessnews

President Nana Addo Dankwa Akufo-Addo says his government is keen on transforming Ghana’s fishing industry. Recognizing the crucial role of...

Read more

Govt issues one-month ultimatum for merchant subscribers to register SIMs

Govt committed to prioritizing gender mainstreaming in energy policies – Herbert Krapa

#CitiBusinessFestival: Go digital to increase customer reach – Businesses told

GRA apprehends shop owners at Achimota for tax infractions

Telcos, BoG to collaborate to retrieve locked funds on MoMo accounts – Ursula

Unlock the full potential of mining, energy sectors for domestic industrialization – Abu Jinapor

Next Post
Deputy CEO of COCOBOD in charge of Agronomy and Quality Control, Dr. Emmanuel Agyemang Dwomoh.

COCOBOD to launch motorized pruner to improve cocoa yields

Video on Demand: Business Weekly

ADVERTISEMENT
Citi Business News

© 2023 Citi Business News - CitiBusinessNews.com by CNR Digital.

Navigate Site

  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

Follow Us

No Result
View All Result
  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

© 2023 Citi Business News - CitiBusinessNews.com by CNR Digital.