The Chamber of Petroleum Consumers, COPEC, is urging motorists to avoid Oil Marketing Companies that have refused to reduce fuel prices at the pumps.
OMCs across the country were expected to reduce their prices from Monday, March 16, 2020, which was officially the next pricing window, and following a drop in crude oil prices by 30% due to a price war between Russia and Saudi Arabia.
The strength or weakness of the Ghana cedi, which is a major determinant of fuel prices, has also been relatively stable, making some gains against major currencies in recent weeks, whereas the taxes that constitute the price build-up for petroleum products has not seen any recent increase.
Even though OMCs such as GOIL have reduced their prices between 5 and 7 percent, others are yet to follow suit. Speaking to Citi Business News, the Executive Director of COPEC, Duncan Amoah, encouraged consumers to send a strong message to such OMCs by boycotting their products.
“Some OMCs as we speak, have refused to even reduce prices. We would want to encourage consumers to ensure that they are price sensitive at this time. They should be on the lookout, and be sure to check for prices before they do their purchases around this time when prices should have gone down.”
It’ll be disappointing if fuel prices don’t go down further – COPEC
The Chamber of Petroleum Consumers Ghana, COPEC, says it expects prices of petroleum products at the pumps to go down further.
COPEC says the reduction for now is insignificant, and they are hopeful the OMCs will gradually reduce their fuel prices to about 15 percent. Mr. Duncan Amoah insists that the price can further go down to bring the needed relief to consumers.
The Institute of Energy Security (IES), had however predicted a reduction of about 5 to 8 percent at the pumps, whiles the National Petroleum Authority, NPA, also said per its calculation, prices were to go down by 15 %.
Stop interfering in fuel price movement – OMCs tell stakeholders
Meanwhile, the Association of Oil Marketing Companies, has advised against what it calls undue interference in the pricing decisions of its members.
World price slump
On Monday, March 9, 2020, oil prices saw its lowest drop since 1991.
This was after Saudi Arabia started a price war with Russia by slashing its selling prices and pledging to unleash its pent-up supply onto a market reeling from falling demand because of the coronavirus outbreak.
Prior to this huge slash, crude prices had been relatively stable. By this, prices are generally expected to go down significantly at the pumps, to ease pressure on consumers.Brent crude futures fell by as much as $14.25, or 31.5%, to $31.02 a barrel. That was the biggest percentage drop since Jan. 17, 1991, at the start of the first Gulf War and the lowest since February 12, 2016.
It was trading at $35.75 at 0114 GMT.
U.S. West Texas Intermediate (WTI) crude fell by as much as $11.28, or 27.4%, to $30 a barrel. That was also the biggest percentage drop since the first Gulf War in January 1991 and the lowest since February 22, 2016. It was trading at $32.61.