The persistent rise in the prices of petroleum products at the pumps in the last couple of months will now be a thing of the past, the Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD), Senyo Hosi, has assured.
This follows the major intervention by the Bank of Ghana (BoG). The central bank took a decisive decision to introduce a foreign exchange forward auction for Bulk Oil Distributing Companies (BDCs), a move meant to help stabilise fuel prices at the pumps in the coming weeks and beyond.
In what is expected to be a major welcome news to the public and the business community, the move will also help to restore market certainty, check inflation and invariably positively impact the disposable income of workers.
Mr Hosi said the move by the central bank would help minimise currency speculations and also improve the credit confidence of their suppliers.
Crude oil prices have been volatile in recent weeks, following Russia’s invasion of Ukraine, with the commodity selling at US$99.19 per barrel on the international market as of Friday, April 8.
This is down from the highest price of about US$130 per barrel in the last couple of months.
This rising price of crude oil on the international market, coupled with the depreciation of the cedi, have led to high fuel prices at the pumps in Ghana. It’s attendant effect has been rising inflation which stood at 15.7 per cent as of the end of February with the rate for March expected to inch up further.
Speaking in an interview with the Graphic Business in reaction to the move by the BoG, Mr Hosi said the chamber was grateful to the central bank for providing a structured support to stabilise price fluctuation of fuel.
“We believe this will help minimise currency speculation which sometimes forces prices to go up unnecessarily,” he stated.