Some industry watchers in the petroleum sector have ruled out a possible decline in the prices of petroleum products at least with the continuous depreciation of the cedi.
According to them, the situation will also come as a disincentive to consumers as they are likely not to benefit from the stability on the global market price of oil. Global oil prices have been stabilizing for some months now which some have cited as an indication for prices to decline.
The Vice President of petroleum price reporting firm- Argus Media, James Gooder explained that the development could largely be attributed to the petroleum price deregulation.
He also intimated that the reduction of prices will largely depend on the foreign exchange gains of the respective oil marketing companies. “It is possible unfortunately because you are buying a product that is denominated in dollars and you are selling it in cedi and the cedi is depreciating against the dollar; you need more cedis to buy the same amount of the fuel so logically in cedi terms the price at the pump will increase,” he said.
“Previously if you are an oil marketing company, you should have a nice forecourt, good service and quality fuel before you can compete.
But now they can compete on prices as well so the company with the highest locks in a good foreign exchange rate and gasoline price can charge less than the competitor and then it will gain more market share,” Mr. Gooder further explained.
Meanwhile an earlier report released by the Chamber of petroleum consumers last week stated that Allied Oil quoted the cheapest price for petroleum products with petrol and diesel selling for GH¢11.98 and GH¢11.54 per gallon respectively.
While SO Energy quoted the highest price of GH¢ 12.64 and GH¢12.25 for a gallon of petrol and diesel respectively.
By: Pius Amihere Eduku
