The Chamber of Petroleum Consumers Ghana (COPEC), has asked the National Petroleum Authority (NPA), to desist from making pronouncements on fuel price movements at the pumps.
This follows the NPA CEO, Hassan Tampuli’s suggestion that per their calculation, consumers should expect about 15 percent reduction in fuel prices from March 15, 2020, which is the next pricing window.
Speaking on the expected reduction due to the 30% drop in global crude prices and the relative stability of the cedi against major international currencies, Executive Director of COPEC, Duncan Amoah, said pronouncements on prices by the regulator, will suggest that Ghana is returning to a regulated petroleum market.
“Indeed, you would expect the NPA to collaborate with the OMCs to ensure there is some sanity in the downstream sector. But they putting out figures is quite worrisome. Civil societies are allowed, but if the regulator comes to say “A” then it suggests that we are going back to a regulated regime.”
According to Mr. Amoah, a regulated regime is not something stakeholders want to encourage since the Petroleum product pricing and deregulation is in full force.
“The NPA should in the future stay away from such projections. We do believe that some OMCs will do more than the 15 % projected by the NPA, while others will do less, but whatever be the case fuel prices are coming down in the second pricing window” he added.
The National Petroleum Authority, NPA, was established by an Act of Parliament (NPA Act 2005, ACT 691) to regulate the petroleum downstream industry in Ghana. As a Regulator, the Authority ensures that the industry remains efficient, profitable, fair, and at the same time, ensuring that consumers receive value for money.
COPEC contemplates court action if OMC’s fail to reduce fuel prices
The Chamber of Petroleum Consumers Ghana (COPEC), has said it will not rule out the possibility of going to court to compel Oil Marketing Companies (OMCs) in the country to reduce fuel prices at the pumps.
The threat comes after a conflict over crude oil prices between Saudi Arabia and Russia pushed the global price of crude oil down by almost 30 percent, the lowest in four years
COPEC is demanding that OMCs also reduce their fuel prices in line with the deregulation policy which allows fuel stations to increase their prices when the price goes up and vice versa.
World Price Slump
Oil prices saw its lowest drop since 1991 on Monday, March 9, 2020, 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.
Saudi Arabia, the world’s biggest oil exporter, is attempting to punish Russia, the world’s second-largest producer, for balking on Friday at production cuts proposed by the Organization of the Petroleum Exporting Countries (OPEC).