OMCs reduce fuel prices by 2%

A number of oil marketing companies (OMCs) have begun a further reduction in the prices of petroleum products, in line with the full price deregulation of the sector.

Checks and report by the Daily Graphic indicated that there was a two per cent average reduction last Saturday.

Full price deregulation of the sector, which began earlier this month, has brought about some serious competition among the OMCs.

This has been occasioned by the implementation of the petroleum pricing deregulation policy being implemented by the government.

Contrary to calls by the Chamber of Bulk Oil Distributors (CBOD) for prices of petroleum products to be reduced by 25%, various Oil Marketing Companies have only sanctioned a close to 15% reduction in price of petrol.

This follows the pressure on the oil marketing companies (OMCs) to reduce the fuel prices.

But there is disagreement over the pricing of petroleum products for consumers between wholesalers and retailers of the products.

The Ghana Chamber of Bulk Oil Distributors has given an indicative price reduction of 26.26 per cent on premium, gas oil, liquefied petroleum gas (LPG) and kerosene but the oil marketing companies have reduced the prices by between 11 and 15 per cent.

The CBOD released an outlook of indicative prices for petroleum products for the next one week to the media, using world market prices for finished products, but the Association of Oil Marketing Companies (AOMCs) says such projection is not achievable.

Cedi appreciation

Some few days ago, fuel prices were reduced by 15 per cent at the various fuel stations.

Players in the industry have attributed the decrease to the appreciation of the cedi against the major international trading currencies.

The Daily Graphic observed that the decrease varied at the various fuel stations, with marginal differences in the prices.

Prices of fuel products have gone up by more than 25 per cent in the past four months. The price of crude oil on the international market fell below $51 a barrel last Tuesday, after hovering round $60.

As of Friday, July 10, 2015, the cedi was being sold at GH¢3.4596 for one dollar on the interbank market and purchased for GH¢3.4630.

The cedi has gained 4.27 per cent in value since February 2015.