The prices of petroleum products are expected to drop by about 2 percent this week.
This is the indication from Citi Business News’ checks with players within the petroleum industry following developments on the global market.
This will also be the second time in less than a week that fuel prices have been reduced this month (June).
Petrol prices to drop by 10 pesewas per litre
With the reduced prices at the various pumps, consumers should be buying a litre of petrol for 4 cedis 75 pesewas.
This means a gallon of petrol could be sold to you at 21 cedis 38 pesewas, down from the 21 cedis 83 pesewas.
This development is because the price of petrol is reducing on the global market as supply has outstripped demand.
Diesel prices to remain unchanged?
But it is likely the price of diesel could remain unchanged or if any drop, it will be quite insignificant.
This is because the price of diesel on the global market has seen little or no drop as demand is high compared to supply.
Currently a litre of the product could be sold to you at 4 cedis 85 pesewas or 21 cedis 83 pesewas per gallon.
COPEC welcomes reduction in fuel prices
The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah says the reduction is welcoming.
“We would wish that the prices go down further as well as the discussion on taxes on fuel products are not forgotten completely. We would also wish that the option of hedging when prices go down, should be exploited fully so that we do not wait until such a time where OPEC’s meeting at the end of the month to decide on whether to increase or cut production, may have another effect on global pricing,” he told Citi Business News.
OMCs to yield to second round of reductions?
This will be the second time that fuel prices have been reduced this month alone.
The first reduction led to 4 pesewas drop in the prices of petroleum products by the Oil Marketing Companies.
Major OMCs like Goil, Total and Shell all reduced their prices, triggering a series of reduction in the industry.
But for now, it is unclear whether the same effect will happen considering the fact that the deregulated market affects the OMCs differently, regarding pricing.