COPEC demands downward review of fuel prices as global crude cost drops

The Chamber of Petroleum Consumers, COPEC has asked for the downward review of fuel prices at the various pumps to reflect the decline in the global crude oil prices.

COPEC believes consumers could enjoy between 10-32 percent instead of the current 2 percent reduction.

A statement release by the institution said “It is our expectation in the coming few days that the various Oil Marketing Companies and the BDCs will ensure the Ghanaian is given nothing but the full benefit of these sustained reductions in fuel prices on the international markets.”

On the back of the cedi’s relative stability compared to other trading currencies, the Petroleum Consumers chamber says fuel prices must should be down.

“Coupled with the steady decline in international oil prices, also is the nominal appreciation of the local currency, the cedi, which has recorded an appreciation of over 5% from earlier depreciation figures of over 5.85/$ to currently trade at below 5.40/$ according to latest BOG figures,” it said.

The concerns by COPEC comes on the back of a report by Bloomberg that price wars between Saudi Arabia and Russia has led to a drop in crude oil prices to about $28 a barrel as at Monday, March 9, 2020, the lowest in four years.

Meanwhile, COPEC wants Ghana’s price stabilization and recovery levy scrapped, explaining that its continuous imposition is unfavorable to the consumer.

“The PSRL must be immediately scrapped from the Price Build Up and a more sustainable source of funding be instituted for premix in order that the whooping 16p/litre charge on fuel prices can be dropped permanently to ease the pressure on pump prices immediately forthwith, we cannot continue to deceive the Ghanaian of a deregulated petroleum pricing environment which is somehow also micromanaged against the very people we expect to bear with when there are increases but someway somehow deny those same people any reductions when the indications point in that direction,” COPEC indicated.