In the following window, we expect petrol to sell for ¢12," he stated. "The forecast will be by Thursday if the cedi continues with its stability."

He explained that the strength of the local currency is now playing a significant role in providing relief to consumers, particularly when international fuel prices are converted from US dollars to Ghana cedis.


"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," stated the scientist.

According to Dr. Oppong, the industry has already noticed price reductions. "We've seen about an average of six to 10% decrease coming from the 15th to 30th of May," he told me.

While the change is excellent news for consumers, he also observed that it poses challenges to government revenue.

"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 told me.


Dr. Oppong expressed confidence that a strong cedi combined with steady international oil prices will help maintain the lower 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 told reporters.

His remarks come at a time when there are strong expectations for additional respite at the pump, following weeks of currency strengthening and lower global oil prices.

The next pricing window starts this week, with the focus now on whether the GH¢12 per litre estimate would be realized.



Source: AdomOnline.com