The African Centre for Energy Policy (ACEP) has asked the Bulk Oil Distributors (BDCs) and the Oil Marketing Companies (OMCs) to reduce the prices of fuel following the recent appreciation of the cedi agains the dollar and other trading currencies.
The cedi recorded its biggest gain against the US dollar this year, when it closed trading about last two weeks, gaining 7.8 percent in value over the greenback.
It dollar is now valued at GHc3.5 per dollar, a massive improvement from the about GHc4.5 it reached some weeks ago.
ACEP said the continuous appreciation in the value of the cedi against the dollar and projections that it will remain so for a while, are clear indications that the prices must be reduced. “We believe it is appropriate for the fuel prices to be reviewed at this stage.
As and when the world prices come down the OMCs should adjust fuel prices accordingly,” the Director of Operations and Resource Management, Benjamin Boakye said on Eyewitness News.
He believes his proposal will promote the operation of a “free market” system and also encourage competition among the BDCs and OMCs.
He further remarked that the only way to shield consumers from paying more for petroleum products when the cedi depreciates is “when government intervenes by taking out some of the taxes.”
Fuel Prices to be decreased In a related development, the Ghana Chamber of Bulk Oil Distributors (CBOD) has announced that there will be a 15% reduction in the prices of petroleum products this week.
According to the Chamber’s Chief Executive Officer, Senyo Hosi, the reduction has been become necessary due to the marginal decrease in the world market price for refined petroleum products.