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Fuel Prices Likely To Go Down Next Week

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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 oneof

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

whenit 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 cannotbe 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.

Source: JFM/Ghana

Kofi Oppong Kyekyeku

I am a Ghanaian Broadcast Journalist/Writer who has an interest in General News, Sports, Entertainment, Health, Lifestyle and many more.

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