Pulse.com.gh logo

Corresponding reduction Petroleum prices must drop further - AGI insists

  • Published:
Mr James Asare-Adjei Agyare, AGI President play

Mr James Asare-Adjei Agyare, AGI President

The call follows the sudden appreciation of the cedi against the United States Dollar and other major foreign currencies in the last couple of weeks.

The Association of Ghana Industries (AGI) has strongly advocated a further reduction of petroleum prices even as prices drop by 15 per cent with effect from Monday.

The call follows the sudden appreciation of the cedi against the United States Dollar and other major foreign currencies in the last couple of weeks.

The President of the association, Mr Asare Adjei, told the GRAPHIC BUSINESS in an interview that “the prices of petroleum products are pegged at the dollar and so if the cedi has gained some considerable strength against the dollar, we should see a corresponding reduction by as much as 22 per cent on the prices and any other products that are pegged at the dollar.”

The dollar, which went for GH¢4.32 at the end of June this year, has fallen to GH¢3.66 (as at July 8) while the British Pound which was exchanged for GH¢6.81 is now at GH¢5.62.

The Euro has also dropped from GH¢4.84 on June 30 to GH¢4.05 as at July 8, the Bank of Ghana daily interbank forex rates have revealed.

This positive trend has been attributed to the intervention of the central bank which is pumping about US$20 million a day into the market as against the daily demand of $14 million.

In the last couple of months, petroleum prices have been increased by more than 20 per cent because of what the players in the petroleum industry described as the effect of exchange rate.

Again, the crude oil prices on the international market has remained stable at about US$58, an indication that the Bulk Oil Distribution Companies (BDCs) have no justification to keep the prices of the products at the current price at the pumps across the country.

Since the government endorsed the full deregulation of the petroleum sector, as per the conditionalities of the International Monetary Fund (IMF), prices of petroleum products have been going up.

The BDCs attribute the cause for their action to the depreciation of the Ghana cedi and, therefore, as the local currency has shown some strength, it will not be out of place to see the prices drop accordingly.

Cedi gains

On the cedi gaining strength against the dollar and other major foreign trading currencies, Mr Asare Adjei said the present trend will help businesses to forecast and plan.

“We have had serious challenges because we are not able to plan; we plan today to import raw materials and by the time we get to the bank, the figures have changed and we are forced to change more cedis to get the dollar equivalent,” he stated.

According to him, the present phenomenon will help businesses to plan.

“What has been done must be sustained to boost confidence in the economy,” he added.

Public warns

Meanwhile, some consumers have supported the AGI call for a reduction in the prices of petroleum products at the pumps.

In a random interview, they stated that “if the prices of the products were increased because the cedi was falling, it sound to reason that the prices of the products should go down now that the cedi is doing well.”

Mr Martin Adjare, a civil servant, added: “They don’t need to be told about this. They should do the honourable things and we will all be free.”

Credit: graphic.com.gh

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos

Top Articles

1 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
2 Ponzi schemes in Ghana These investments are Ponzi schemes in Ghana,...bullet
3 Minimum Capital Requirement GN, Premium, Sahel Sahara Bank in merger...bullet
4 Salaries In 2018 Here are the dates public workers will be paid in...bullet
5 Fuel Prices IES predicts fuel prices to go upbullet
6 Ghana-Chinese Relationship StarTimes to distribute 300 free TV...bullet
7 BoG Capitalisation Omnibank, Sahel Bank to complete merger...bullet
8 Baker and Mckenzie Menzgold, preparing for litigation,...bullet
9 Banking Crisis Collapsed banks minimised job losses...bullet
10 How to create an NGO in Ghana How to register and...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
3 Plane Crash Starbow suspends operations following plane crashbullet
4 Former Capital Bank staff grills pork for survivalbullet
5 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
6 Money Alert Meet Africa's richest womanbullet
7 Selorm Adadevoh MTN CEO dances Agbadzabullet
8 Support Finance minister buys Kantanka carbullet
9 New Phone Nokia’s MWC 2018 event in 7 minutesbullet
10 Bozoma Saint John 10 quotes from Uber top official,...bullet