Stable Cedi Could Drive Petrol Prices to GHS 12 Per Litre – AOMCs CEO
Ghanaians could soon see a significant drop in fuel prices at the pump, with petrol potentially selling for as low as GHS 12 per litre in the next pricing window, according to the Chief Executive Officer of the Association of Oil Marketing Companies (AOMCs), Dr Riverson Oppong.
Speaking in an interview on Monday, May 26, Dr Oppong attributed the anticipated decline in prices to the recent stability of the Ghanaian cedi. He indicated that if the local currency maintains its strength against the US dollar, consumers may enjoy more relief in the coming days.
“Believe me, in the next window, we are even foreseeing petrol selling for GHS 12,” Dr Oppong stated. “The forecast will be by Thursday if the cedi continues with its stability.”
He explained that the cedi’s strength has become a key factor in the pricing of petroleum products, especially in the conversion of international fuel prices from US dollars to the Ghanaian cedi.
“As far as the cedi is also a very big factor in the forex calculation—that’s converting from USD to cedi—we also have that affecting the pump price,” he noted.
Dr Oppong revealed that the industry has already observed reductions in fuel prices, with average decreases ranging between 6% and 10% during the second half of May.
“We’ve seen about an average of six to 10% decrease coming from the 15th to 30th of May,” he disclosed.
While the expected drop in prices would bring much-needed relief to consumers, the AOMCs boss noted that it could also pose a challenge to government revenue generation in the upstream petroleum sector.
“As we are happy with the downstream effect—that is, the fuel price going down at the pump level—you also see that there is revenue reduction in upstream,” he explained.
Nonetheless, Dr Oppong remains optimistic, asserting that a strong cedi, coupled with stable international benchmark prices, could help sustain the downward trend in fuel prices.
“With the plateauing of the international benchmark prices, we are likely to see that, and we shall be proud to have that effect on our consumer,” he added.
His comments come at a time when public expectations are high for continued fuel price reductions, buoyed by the appreciating local currency and easing global oil prices.
The next pricing window opens later this week, with market watchers and consumers closely monitoring developments to see if the GHS 12 per litre projection will be realised.
