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Fuel price to drop in the first window of June 2023 – COPEC predicts

Fuel prices in Ghana are expected to experience a marginal decline in the first pricing window of June 2023, according to projections made by the Chamber of Petroleum Consumers Ghana (COPEC).

The chamber anticipates a marginal decrease in fuel prices during this period, attributing this prediction to the relative stability of forex rates, despite the international market benchmark prices of crude oil not favoring a decline.

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Notwithstanding this great news, COPEC has also forecast a decline of approximately 5% in the price of Liquefied Petroleum Gas (LPG) during the same period. They predicted that Fuel price to drop in the first window to help cushion Ghanaians.

Duncan Amoah, the Executive Secretary of COPEC, shared his insights with Citi Business News during an interview that worldtrending247.com monitored, stating that the first pricing window for June appears relatively stable, with some oil marketing companies (OMCs) expected to experience a slight decline in their current pump prices.

Duncan Amoah further explained that this projection is based on the relative gains the Ghanaian cedi has made within the specified period. However, it is worth noting that the international market benchmarks have not been favorable as witnessed in the previous pricing window.

On May 29, 2023, the country’s fuel price stood at a staggering price of GHS 13.2 per liter when quoted in US dollar equivalent of 1.19 U.S. Although this price exhibited a decrease compared to December 2022, it was considerably higher compared to most of the preceding weeks.

It is noteworthy that the price of fuel in Ghana has seen a significant increase of over 91 percent since January 3, 2022. As of May 29, 2023, some OMCs were selling both petrol and diesel at GHS 12.30.

These projections and observations made by COPEC indicate a potential relief for Ghanaian consumers who have been grappling with high fuel prices. The anticipated drop in fuel prices during the first pricing window of June 2023 is primarily attributed to the relative stability of forex rates, despite the unfavorable international market conditions for crude oil.

Lower fuel prices could potentially lead to a decrease in transportation costs, providing some respite for businesses and individuals alike. This news could positively impact the country’s inflation rate reducing it significantly as there is a relation between the two in the past. Seeing that fuel prices play a significant role in determining overall price levels in an economy then this could be great for Ghana.

However, it is important to note that fuel prices are also affected by global market dynamics, geopolitical tensions, and domestic policies.