The Chamber of Petroleum Consumers Ghana (CPCG) has hinted that prices of petroleum products are likely to go up as crude oil prices on the international market continue to appreciate.
The CPCG attributed the rise in international crude oil prices to rising international demand for the commodity and disruption in the supply of crude oil to the market.
A statement released on Thursday, May 26 and signed by the Executive Secretary of CPCG, Duncan Amoah, said: “The wildfires in Canada seem to finally take a toll on world market indexes as petroleum prices moved above the $50 per barrel for the first time in many months.”
An increasing demand of crude oil from developing countries and a supply “shortfall of about 1 million barrels per day as seen the United States has accounted for the recent movements in world oil prices currently between $49-50,” the statement maintained.
Moreover, “market rates continue to remain volatile, but the pending Organization of the Petroleum Exporting Countries (OPEC) meeting on June 2nd is set to give yet the biggest indication of whether the major producers will agree to a cut back on export limits or the excess supply of some two thousand barrels per day.”
The relatively high exchange rate between the Ghana cedi and dollar will also contribute to a possible hike in prices of petroleum products in the country. Currently, the cedi is trading at GH¢ 3.83 against the US dollar.
The Chamber of Petroleum Consumers Ghana believes that the rise of crude prices on the international market is likely to impact on Ghana’s local market.
However, the actual impact “will be known by close of the week as another pricing window where petroleum service providers will get a chance to adjust or maintain prices under the price liberalization regime of the national petroleum authority starts.”
The new price liberalization regime allows petroleum service providers to review prices twice every month and the next review period is Tuesday, June 1.