Audio By Carbonatix
Consumers could see further relief at the fuel pumps as falling international crude prices and the relative stability of the Ghana cedi ease pressure on petroleum prices.
Chief Executive Officer of Petrosol, Michael Bozumbil, says the company expects fuel prices to remain stable in the next pricing window.
Speaking on Joy News’ PM Express Business Edition on Thursday, he said consumers should not expect an increase in fuel prices.
“From where we sit, like you said, the numbers, my team are computing the numbers, but we study the trend, and what I can say with some amount of certainty is that from the standpoint of Petrosol, the consumer should rest assured that prices will not go up.”
He said the company was still assessing whether prices could fall and by how much.
“As to whether it will come down and by what, I mean,” he added.
Mr Bozumbil explained that international petroleum prices and exchange rate movements remain the key factors influencing fuel prices in Ghana.
He said the stability of the cedi has become particularly important in determining whether reductions in international prices translate into cheaper fuel for consumers.
“It’s a combination of both, you know. The key factors, international prices and then the cedi stability.”
According to him, previous periods had shown how a weakening cedi could wipe out the benefits of lower international petroleum prices.
“The stability of the cedi has contributed, you know, to the price stability in in recent times, because anytime international prices even increase and by, or decrease, in the past there’ve been instances where the international prices would decrease, but yet the cedi will, you know, depreciate sharply, and then we will we will be forced to, you know, increase prices on the market.”
He said this often confused consumers who saw global oil prices falling yet faced higher prices at local fuel stations.
“Thankfully, with the stability of the cedi, at least consumers now can see the benefits, you know, usually being transferred to them.”
Mr Bozumbil said the development also demonstrated the benefits of deregulation, particularly when market conditions are favourable.
“And that is what the beauty of deregulation is all about, that these benefits can always get to the consumer, so that when the upside comes, the consumer is more willing to accommodate.”
He maintained that both global petroleum prices and the strength of the local currency would continue to shape pump prices.
“So for me, it’s the two factors, but our local currency, the strength of our local currency, has been very helpful.”
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