Fuel prices expected to reduce at pumps today following 15p reduction
Some Oil Marketing Companies are expected to start reviewing downwards fuel prices at the pumps today.
It is expected that majority of OMCs will be reducing their prices as it responds to the 15p reduction by government as well as the slow down in the depreciation of the the cedi.
The Finance Minister, Ken Ofori-Atta, has revealed that government’s decision to cut fuel prices by 15 pesewas per litre takes effect today, April 1, 2022.
This comes on the back of measures taken by the government to reduce economic hardship on Ghanaians.
The said cut is expected to last for three months.
‘’To mitigate the impact of the rising price of petroleum products at the pump, for the next three months, government has decided to reduce margins in the petroleum price build-up by a total of 15 pesewas per litre with effect from 1st April,’’ stated the Minister at a press briefing on Thursday, March 24, 2022.
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A breakdown of the 15 pesewas cut reveals the following;
- BOST margin reduced by 2 pesewas per litre
- Unified Petroleum Pricing Fund (UPPF) margin reduced by 9 pesewas per litre
- Fuel Marking Margin (FMM) reduced by 1 pesewa per litre
- Primary Distribution Margin (PDM) reduced by 3 pesewas per litre
According to the Finance Minister, these reductions are expected to reduce prices of petrol and diesel by 1.6% and 1.4% respectively, adding that it should help stabilize the prices of fuel at the pumps and also cushion consumers.
Chief Executive of the Chamber of Bulk Oil Distributors, Senyo Hosi, has indicated that the intervention by the Bank of Ghana with adequate supply of dollars will impact positively on prices at the pumps.
“It is something we’ve been working with the central bank and the industry for a long time. For us to have this start, I think its a big step. It helps address a lot more the uncertainties and the speculations that wrongly go into pricing of petroleum’’.
‘’Generally, we should have a more competitive FX rate to factor in our price build up for the window. So by way of that alone, we think that prices should be lower than would have been if this auction was not undertaken’’, he added.
Meanwhile leading oil marketing firm Total, has reduced it prices beginning today, and is now selling a litre of petrol and diesel for GHC9.40p and GHC10.24p respectively.
