The Ghana Chamber of Bulk Oil Distributors (CBOD) has called on the government of Ghana to expedite measures in stabilizing the Cedi to ensure reductions in the prices of fuel across the country.
The Chamber believes that a stable currency will see a reduction in the prices of diesel, petrol and prices of other goods and services.
The Chief Executive Officer of CBOD, Patrick Ofori, speaking during a virtual media interaction, stated that even though international market prices and forex rates affect fuel pump prices, the forex rate changes on pump prices had an enormous impact on fuel prices in the country.
The CEO, however, added that recent reductions in international market price and forex rate had not been reflected in fuel price reductions.
“As the major determinants of pump prices fall (international market price and forex rate), pump prices were expected to follow suit, but the depreciation of the cedi does not make it happen,” Dr. Ofori said.
He continued, “From June 2022 to April 2023, petrol and diesel at the international market fell by 47% and 40%, respectively, however, pump prices were still up by 17% and 1% for petrol and diesel due to the 55% depreciation of the Bank of Ghana (BoG) auction rate.”
“Comparing the international price on the 16 May window to the 1 June 2022 window; prices in June were far higher than it is currently. Yet pump prices are higher now than before, which ordinarily should have been lower than it was in June 2022. This is because of the depreciated cedi,” he added.
Patrick Ofori also added that the government’s Gold-for-Oil programme has helped to reduce speculations in the forex market but still has no significant impact on the recent decline in fuel prices.
“The announcement of the G4O programme gave some level of hope to control currency speculations, and once there’s a dedicated line of stream of forex, there is less speculation in the system,” he noted.
Source: www.ghanaweb.com