CPC calls on BDCs to reduce fuel prices

Business News of Wednesday, 1 February 2017

Source: ultimate1069.com

2017-02-01

Petrol Pump Car  Fuels TankFile photo

The Chamber of Petroleum Consumers is calling on the various Bulk Distribution Companies (BDCs) and Oil Marketing Companies (OMCS) to reduce fuel prices between 1-4% to ease the current pressures on the pockets of Ghanaian petroleum consumers.

CPC expects that fairness under price deregulation which dictates prices should reflect current trends and market dynamics will prevail same way it does at the periods when prices have had to go up.

In a statement signed by the Executive Secretary Chamber Of Petroleum Consumers Ghana ( COPECGH ) Duncan Amoah, it said ‘We once again reiterate our call on the various bulk distribution companies and oil marketing companies to reduce fuel prices across pumps to ensure the mounting pressure on Ghanaian pockets is reduced to commensurate world market movements and key local indicators.

We further advise Ghanaians to patronise the few oil marketing companies who demonstrates price sensitivity over the period as its the only way those charging higher currently will begin to appreciate the need to give value for money in petroleum prices’.

It encouraged officials at the Bank of Ghana (BoG) to continue to work hard to stabilise and possibly strengthen the currency to forestall any further fuel price increases.

Read details of the statement:

CHAMBER OF PETROLEUM CONSUMERS GHANA REDUCE FUEL PRICES 1-4% 1st PRICING WINDOW – FEBRUARY 2017 31/ 01/ 17

The first fuel pricing window for the month of February 2017 under the National Petroleum Authority’s deregulation pricing programme commences in a few hours from now. Prices of fuel products within the country has seen some cumulative 14-17% increases over the past three pricing windows, with the last window which expires midnight of today the 31st of January recording further marginal increases. The cedi which has been the main challenge over the past three windows seem to have made some gains to stabilize over the past two weeks to currently close trading at an exchange of 4.2798 / $ 1.

World market indexes have seen some drops by over $2 /barrel to currently trade at around $53/barrel from the previous levels of around $56/barrel. Levels of taxes which have been one major concern for most Ghanaian petroleum users continue to remain at same levels though some aspects of the levies continue to rise anytime ex refinery prices go up.

From the above, it is our expectation and that of Ghanaians that the coming window will see the various bulk distribution companies (BDCs) and Oil Marketing Companies ( OMCS) reduce fuel prices by between 1-4% to ease the current pressures on the pockets of Ghanaian petroleum consumers.

It is our expectation that fairness under price deregulation which dictates prices should reflect current trends and market dynamics will prevail same way it does at the periods when prices have had to go up. We have seen periods when the Ghanaian downstream and petroleum service providers have remained quite insensitive to movement of indexes on the world market and the cedi’s performance though these two have often served a strong basis for the various PSPs when prices have had to go up.

Most pumps as at this day and time are dispensing at between 4.080-4.160/litre for Pms and diesel or AGO is trading at between 4.060-4.120/litre from previous levels of 3.930-3.961 for PMS and 3.930-3.960/litre for diesel.

We encourage officials at the Bank of Ghana to continue working hard to stabilize and possibly strengthen the currency to forestall any further fuel price increases whiles reminding government of the need to also urgently review the high taxes and levies on fuel products across the country.

We once again reiterate our call on the various bulk distribution companies and oil marketing companies to reduce fuel prices across pumps to ensure the mounting pressure on Ghanaian pockets is reduced to commensurate world market movements and key local indicators. We further advice Ghanaians to patronize the few oil marketing companies who demonstrates price sensitivity over the period as its the only way those charging higher currently will begin to appreciate the need to give value for money in petroleum prices.

Signed Duncan Amoah Executive Secretary Chamber Of Petroleum Consumers Ghana ( COPECGH )

Cc: Ghana Private Road Transport Union Association of Ghana Industries Industrial and Commercial Workers Union Institute of Statistical Social and Economic Research Chamber of Bulk Oil Distribution Companies Association of Oil Marketing Companies

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