Petrol Prices Set for Possible November Reduction as Global Crude Oil Prices Plunge

Motorists in Ghana could see lower petrol prices from November 16 as a recent decline in international crude oil prices raises expectations of relief at the pumps, the Chamber of Petroleum Consumers (COPEC) has said.

COPEC Executive Secretary Duncan Amoah says crude prices have fallen by more than 12 to 14 per cent over 48 hours, creating the possibility of a downward adjustment in the next fuel pricing cycle.

However, he cautioned that the decline in crude oil prices would not immediately translate into cheaper fuel, as refined petroleum product prices typically take between six and seven days to respond to movements in the global crude market.

The next pricing window opens on November 16, with the National Petroleum Authority’s guidelines requiring the use of average free-on-board prices recorded between October 27 and November 11 to determine the applicable prices.

Mr Amoah said if the downward trend on the international market persists and feeds through to refined products within the assessment period, petrol prices could fall in the second half of November.

“If all things are equal, and what we have observed since the mid-term elections in America happened is that you have seen prices consistently drop on the international market, our prediction or projection will be that for the second window of November, the cost of petrol, particularly, would have witnessed some reduction,” he said.

Speaking on Citi FM on Thursday, November 5, he explained that the timing of the adjustment in refined product prices would determine whether consumers benefit from the November review or have to wait until December.COPEC