COPEC to government: Stabilise cedi to reduce crude oil prices locally

The Chamber of Petroleum Consumers (COPEC) has urged the government to stabilise the Ghana cedi to help reduce the impact of the rising world crude oil prices at the local pumps.

Last week, some Oil Marketing Companies (OMCs) increased the prices of fuel at the pump stations. Goil and Total are currently selling a litre of diesel and petrol at GHC6.90 respectively. 

The upward adjustment is said to be a result of rising crude oil prices on the international market. 

But speaking with Emmanuel Aboagye Wiafe on Energy 101 Monday (8 November), Duncan Amoah, executive secretary of the Chamber of Petroleum Consumers (COPEC) Ghana, indicated that when the cedi is fairly stable, the impact from crude oil prices at the local pumps will be minimum.

“This is not in isolation because you have the cedi taking a hit, depreciating because of the window we find ourselves, thus the last quarter of each year, the cedi comes down.” 

“At the same time, the cedi is under pressure, world market prices are also escalating. So, you put the two together and there’s only one eventual outcome and therefore what we need to do is to try and stabilise the cedi at this time,” he noted.

Price jump

Meanwhile, Oil rose towards US$84 a barrel on Tuesday (9 November), gaining for a third session, as the U.S. lifting of travel restrictions and more signs of a global post-pandemic recovery lifted the demand outlook, while supply remained tight.

On Monday (8 November), travellers took off for the United States again, while the passing of US President Joe Biden’s infrastructure bill and better-than-expected Chinese exports helped paint a picture of a recovering global economy.

Brent crude rose 50 cents, or 0.6%, to US$83.93 a barrel by 0920 GMT, after gaining 0.8% on Monday. US oil advanced 41 cents, or 0.5%, to US$82.34, also after a 0.8% rise the previous day.