Ghana’s fuel deregulation regime is beginning to translate into more direct benefits for consumers as international oil prices decline and the cedi remains relatively stable, according to PETROSOL Chief Executive Officer Mr. Michael Bozumbil.
Mr. Bozumbil said consumers should not expect an increase in fuel prices during the first pricing window of September, although the extent of any possible reduction was still being assessed.
Speaking on Joy News’ PM Express Business Edition, he said PETROSOL’s analysis of prevailing market trends pointed to stable fuel prices.
“Our 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,” he said.
Mr. Bozumbil attributed the current outlook to two key factors: movements in international petroleum prices and the stability of the Ghana cedi.
He explained that in the past, declining global oil prices did not always result in lower prices at the pumps because sharp depreciation of the cedi increased the cost of importing petroleum products.
According to him, oil marketing companies were sometimes compelled to raise fuel prices despite favourable movements in international markets, leaving consumers unable to benefit from falling global prices.
However, the recent stability of the local currency has helped ensure that the benefits of lower international petroleum prices are increasingly passed on to consumers.
Mr. Bozumbil said this reflected one of the key advantages of Ghana’s deregulated fuel pricing system, which allows pump prices to respond more directly to changes in market conditions.
He said consumers were now better positioned to benefit when international prices decline, while also recognising that prices could rise when market conditions move in the opposite direction.
Mr. Bozumbil maintained that both global oil prices and exchange rate movements would continue to play a central role in determining fuel prices in Ghana.
However, he said the recent performance of the cedi had been particularly important in supporting price stability and helping shield consumers from increases at the pumps.