The Chamber of Petroleum Consumers, COPEC, has predicted that fuel prices in Ghana will continue to drop marginally for the rest of the year.
The Chamber believes that based on happenings on the international oil market, consumers can expect to purchase fuel at reduced prices.
Speaking to Citi Business News, Executive Secretary of COPEC, Duncan Amoah, indicated that some reduction should be expected till the end of 2020.
“As we speak there is quite a volatile situation in the middle east. You have a situation where Saudi is now reducing their export value for even their crude. It has an effect on finished products. We will be happy to have prices continuously fall so that Ghanaians can at least be able to accommodate their fuel expenditure. That notwithstanding, anything else could also happen so it is our anticipation that prices will fall between now and December. But if nothing happens geopolitically to change that dynamic it is quite likely that we will see prices drop”.
The coronavirus pandemic negatively impacted the oil markets with prices dropping sharply. The global outbreak led to a drastic drop in demand for fuel across the world compelling producers to reduce their prices over fears of running out of storage.
In the UK for instance, the benchmark for oil slumped 10% to around $16 (£13) a barrel in another day of declines.
It came after the price of West Texas Intermediate (WTI), the benchmark for US oil, also fell below zero for the first time ever in April.
In Ghana, prices fell from almost GHS5 per litre of fuel to GHS3.5 per litre at some fuel stations.
But as many countries across the world began easing some COVID-19 induced restrictions, the demand for fuel began to pick up, and prices of fuel did same simultaneously.
Petrol is currently selling for about GHS 4.89 per litre, while diesel goes for GHS 4.91 per litre.
COPEC had earlier predicted a reduction in prices of fuel for the second pricing window of September.
Subsequently, some market leaders like Goil Energy dropped their price to GHS 4.77 for both diesel and petrol.