Businesses and individuals can anticipate some respite as fuel prices are expected to drop marginally this week at the various pumps.
Industry players are projecting about a 2% reduction at the pumps which will bring some reprieve to businesses, individuals, and the general economy.
Experts are attributing this reduction to a combination of factors which include the relative stability of the local currency coupled with a significant reduction in the demand for crude oil by world economic giants, China.
China, one of the world’s largest importer of petroleum products has stayed crude prices on the international market by reducing their demand. The slump in the Asian country’s demand for crude, experts say is due to a slowed rate of economic activity and growth.
In addition, China as part of the world’s green agenda has significantly increased sales of Electric Vehicles (EVs) leading to a lower demand for crude oil.
Energy Strategist, Dr. Yussif Sulemana explains that this slowdown in China has kept global oil prices hovering in the low-to-mid $70 range per barrel, with little sign of a rebound in the near term.
“The pressure on the prices is typically due to China. We really don’t know when China is going to pick up in terms of their petroleum demand. And with China, the number one petroleum product importer; if China’s demand doesn’t pick up, I don’t foresee oil prices crossing the mid-70s in the near future or in the medium term. So yes, the combination of the international prices not going up is almost still within the lower 70s as against the cedi marginal stability. That is contributing to what we are seeing,” he explained in an interview monitored by The High Street Journal.
Ghana’s fuel prices, the strategist says are tied to these global trends. With China’s subdued demand for crude creating downward pressure on prices, Ghana’s petroleum imports have become slightly more affordable. This, coupled with the cedi’s marginal stability, has set the stage for the expected reduction in pump prices.
However, the potential 2% price reduction the energy strategist believes is not enough considering the gains. He is convinced that oil marketing companies can do more by offering a better price cut.
“I think we could have gotten something more than this, but maybe the marketers are just proceeding with caution,” the expert noted, hinting at conservative pricing strategies among industry players.
The anticipated price adjustment comes after months of volatility in the downstream sector, marked by exchange rate fluctuations and geopolitical tensions that kept prices high.
For consumers and businesses alike, this development could translate into lower transportation costs, reduced operational expenses, and some economic respite in the face of persistent inflation.
