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Fuel prices remain high despite falling global markets due to weak cedi

Commodity News Fuel prices remain high despite falling global markets due to weak cedi
FRI, 17 MAY 2024 LISTEN

Fuel prices in Ghana have yet to see a drop at the pumps, despite significant declines in international oil markets in recent weeks.

As of Friday, May 17, the major fuel brands - Shell, TotalEnergies, Goil and Petrosol - were still charging between GHS14.39 to GHS14.79 per litre for petrol and GHS14.65 to GHS14.79 per litre for diesel.

This, to many, is a surprising development given that benchmark petroleum product prices on world markets have fallen by around 5-6% for petrol and 4.5% for diesel since the start of May, according to the Institute of Energy Security (IES).

However, Ghana's local currency, the cedi, which is used for transactions by the industry, has lost 8-10% of its value against the US dollar over the past two weeks.

This rapid depreciation of the cedi is negating lower global crude prices for Ghanaian oil marketing companies (OMCs).

Speaking to Accra-based Citi TV, Duncan Amoah of the Chamber of Petroleum Consumers warned that with the cedi continuing to weaken, fuel prices may remain stable or potentially increase further - piling additional costs on consumers despite international oil price relief.

The second pricing window for OMCs opened on Thursday, May 16, but analysts say only a marginal drop, if any, can be expected given the cedi's struggles on forex markets are preventing full transmission of savings from overseas.

For now, Ghanaian drivers, passengers and businesses may have to endure high fuel costs for the foreseeable future.

Isaac Donkor Distinguished
Isaac Donkor Distinguished

News ReporterPage: IsaacDonkorDistinguished

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