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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
