Petroleum prices to go down in Ghana.

Prices of petroleum products are set to go down from next week Thursday following the cedi’s sharp appreciation against the dollar. The local currency’s depreciation over the past months had been one of the main reasons for the increase in prices of petroleum products. However, with the latest
development, prices are expected to go down at next price review. Even though other factors like prices of crude oil, freight charges, margins and taxes on the product influence prices, the magnitude of the cedi’s appreciation might make the other variables irrelevant when it comes to reviewing prices. The appreciation of the currency makes it a little less expensive to import the products, hence the need to pass on the benefit to consumers. However to the extent that pricing is out of government’s control, because of full deregulation, which took effect from the beginning of this month, it might be a little difficult to give actual reduction in percentage terms. If the cedi’s gain is sustained, consumers may also benefit from some reductions in utility tariffs. In a related development Petroleum minister Emmanuel Armah Kofi- Buah says there cannot be any justification for importers and marketers of petroleum products not to reduce their prices. "The cedi is appreciating and I expect to see a clear, clear reduction in petroleum products in the next review. There would be no justification for not reduction the price," he maintained.