10% petrol price reduction won’t affect price of goods — Traders

Prices of goods and services are not likely to go down anytime soon despite significant reduction in prices of petroleum products.

The National Petroleum Authority (NPA) on Wednesday reviewed prices petroleum products downwards by 10 percent.

Currently, a litre of petrol is selling at 3 Ghana cedis 5 pesewas, diesel at 2 Ghana cedis 97 pesewas, while a kilogram of LPG is going for 2 Ghana cedis 64 pesewas.

Consumers, however, say the reduction does not reflect the current price of crude oil on the international market.

Since the reduction there has been pressure on transport operators and traders to reduce their wares in line with the 10 percent reduction in petroleum prices.

Usually a reduction in transport fares can cause a reduction in prices of goods on the market.

But traders say there would not be any reduction in prices of their wares even if transport fares are reduced.

President of the Ghana Union of Traders, George Ofori, says even if there will be reduction in the price of goods on the market, it won’t happen soon.

“The dynamics of trading is not as we see it…for instance when the crude oil started dropping, even government found excuses to say that because they were owing the BDCs they were not going to be able to reduce [fuel prices]”, said Mr Ofori.

He indicated that traders would also like to make gains from the fuel price reduction before reducing the prices of their goods.

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