Crude oil prices hit record low

The price of crude oil in the international market has dropped to a record low, a development that could influence price review locally by this weekend.

The commodity has hit 53 dollars a barrel, the lowest in a long while.

Predictions from the International Monetary Fund (IMF) and other international energy firms suggest also that prices could even go down further to about 40 dollars a barrel before the end of year.

But consumers will have to wait and see if this could result in a reduction in prices of finished products like petrol and diesel on the market.

Currently the firms in Ghana that import these products price them based on crude prices and other input costs in producing it in Europe as well as the current exchange rate.

So if their forecast suggests that the Ghana cedi will stabilize in the coming weeks, then prices at the pumps could go down substantially this weekend in line with price deregulation.

But there is bad news for the economy, if the price continues to drop. The trend could affect government’s projected revenue from the sector substantially.

For instance, the recent drop in crude oil prices has forced government to revise its expected revenue from the sector from Ȼ4.5 billion to Ȼ1.8 billion for this year.

So consumers would have to assess the broader impact of low prices on the economy and projects that are being funded from the oil revenue before they jubilate.