Ghana’s fuel deregulation begins to pay off as global oil prices fall

Ghana's fuel deregulation is starting to show positive outcomes for consumers as global oil prices are decreasing and the local currency, the cedi, remains stable, according to Petrosol's CEO Michael Bozumbil. Speaking to Joy News, Bozumbil stated that consumers should not anticipate a rise in fuel prices during the September pricing window, as his company's market trend analysis indicates price stability.

Bozumbil explained that the current outlook is influenced by a combination of international oil prices and the relative stability of the Ghana cedi. He emphasized that previous depreciation of the cedi prevented fuel prices from dropping even when international crude prices fell. However, the strength of the cedi has played a significant role in maintaining fuel price stability recently.

Bozumbil noted that previous instances of cedi depreciation forced oil marketing companies to raise prices despite falling international crude prices, leaving consumers unaware of the decrease. He highlighted that the current cedi stability allows consumers to directly benefit from favorable international price movements. Bozumbil affirmed that the intended purpose of deregulation is to ensure that favorable market conditions are passed on to consumers, and the recent stability of the cedi has demonstrated this benefit.

He emphasized that both international oil prices and the cedi's performance continue to be critical factors in determining fuel prices, but the strength of the local currency has been particularly helpful.