Fuel prices are expected to remain stable in the next pricing window, with a relatively stable Ghana cedi and lower international crude oil prices easing pressure on consumers.
Petrosol CEO Michael Bozumbil says consumers should not expect an increase in fuel prices when the next pricing window begins.
He said although the company was still computing the exact figures, current market trends point to price stability.
“From where we sit, as you said, my team are computing the numbers, but we study the trend, and what I can say with some amount of certainty is that from the standpoint of Petrosol, the consumer should rest assured that prices will not go up.”
Mr Bozumbil was speaking on Joy News’ PM Express Business Edition on Thursday.
He, however, stopped short of predicting a price reduction, saying the extent of any decline would depend on the final calculations.
“As to whether it will come down and by what, I mean,” he said.
According to the Petrosol CEO, two key factors are driving the current outlook: international fuel prices and the stability of the Ghana cedi.
“It’s a combination of both, you know. The key factors, international prices and then the cedi stability.”
He said the relative stability of the local currency has become particularly important in keeping pump prices steady.
“The stability of the cedi has contributed, you know, to the price stability in recent times,” he explained.
Mr Bozumbil noted that in previous periods, declines in international fuel prices did not always translate into lower prices at the pumps due to the sharp depreciation of the cedi.
He said this often left consumers confused when international prices fell, but local fuel prices still increased.
“Because anytime international prices even increase and by, or decrease, in the past there’ve been instances where the international prices would decrease, but yet the cedi will, you know, depreciate sharply, and then we will be forced to, you know, increase prices on the market, and the consumer will not understand, because I mean they see that prices are coming down, so why?”
He said the cedi’s current stability is allowing consumers to benefit more directly from favourable movements in international markets.
“But thankfully, with the stability of the cedi, at least consumers now can see the benefits, you know, usually being transferred to them.”
Mr Bozumbil said the development also demonstrates the potential benefits of Ghana’s deregulated fuel pricing regime.
“And that is what the beauty of deregulation is all about, that these benefits can always get to the consumer, so that when the upside comes, the consumer is more willing to accommodate.”
He said the strength of the local currency remains a major factor behind the current stability.
“So for me, it’s the two factors, but our local currency, the strength of our local currency, has been very helpful.”
