The Chamber of Petroleum Consumers (COPEC) has forecasted a marginal decrease in fuel prices beginning January 16, during the second pricing window of the month. Petrol prices are expected to decline by approximately 3%, while diesel prices may drop by around 1%.
This projection hinges on the performance of the Ghanaian Cedi against major international currencies. During the first pricing window of January 2025, fuel prices experienced a slight increase, prompting Oil Marketing Companies (OMCs) such as GOIL and Total to adjust their prices upward.
According to COPEC’s Executive Secretary, Duncan Amoah, the exchange rate remains a critical factor in determining final pump prices. “Indications are that prices of petroleum products could go down between 1% and 3% for petrol and diesel. LPG could increase by about 3%. However, this depends on product availability and the cedi’s performance. While some markets suggest a potential appreciation of the cedi, others indicate depreciation, making the cedi’s trajectory vital. Meanwhile, international benchmarks point to a reduction,” he told Citi Business News.
This optimistic outlook comes on the heels of the Bank of Ghana’s (BoG) first foreign exchange forward auction of 2025, held on January 14. The auction, which allocated $20 million to Bulk Oil Distribution Companies (BDCs), aimed to stabilize the exchange rate and manage foreign exchange reserves.
However, Amoah cautioned that the $20 million allocation falls short of meeting the significant foreign exchange demands of BDCs for petroleum imports. “What you require currently is between $400-$500 million if the market is importing petroleum products. The BoG’s minimal injections—ranging from $50-$100 million—are insufficient to drive meaningful appreciation or stabilization of the cedi. A more sustainable and robust intervention is necessary,” he stated.
As Ghanaians anticipate relief at the pumps, COPEC emphasizes the need for structural reforms to ensure a stable exchange rate and address the long-term challenges in the petroleum import market.
Source:Mybrytfmonline.com/Gumedzo Isaac Acheampong
