Business News of Tuesday, 24 May 2016
The Chief Executive Officer of the Chamber of Bulk Oil Distributors, Senyo Hosi has cast doubt over a possible reduction in the retail price of petroleum products within the next pricing window.
According to him, the continuous increase in global oil prices is likely to push retail prices up.
“Petroleum prices are rising; they are not reducing so I am not too sure about the position that will be held by the various representatives or lobby groups and in addition, as far as the pumps are concerned, it is largely deregulated,” Global oil prices have been rebounding for a some time now after global price slump in the latter part of last year.
It is now selling around 46 dollars per barrel. Though the Chamber of petroleum consumers has been advocating a reduction in retail prices, Senyo Hosi explains that prices could have been higher without a deregulated market.
“The prices that will be there will be reflective of what is happening on the international market, the performance of the cedi and also the margins that are reasonable for any operator. Because of deregulation, the prices are even lower than they would have been if the government was regulating the price,” he observed.
He also tells Citi Business News Oil Marketing Companies could only reduce prices if determining economic conditions stabilize. Prices of petroleum products have been increased for all the three pricing windows in the second quarter of this year. For the first pricing window in April, a litre of petrol increased by 15 pesewas to sell at 3 cedis 47 pesewas while diesel also increased by 7 pesewas to sell at 3 cedis 33 pesewas per litre.
For the second pricing window for the same month, the price of a litre of petrol was maintained at 3 cedis 47 pesewas while diesel was reduced by 4 pesewas to sell at 3 cedis 29 pesewas.
For the first pricing window in May, a litre of petrol increased by 12 pesewas and it is currently selling at 3 cedis 59 pesewas while a litre of diesel went up by 10 pesewas and it is selling at 3 cedis 39 pesewas.