Majority of the pumps, as of yesterday, had dropped their prices by just about 5.13 per cent on the average as against the decline of not less than a 10 per cent reduction.

This represents a cumulative drop of GHp28p per litre or 5.13 per cent reduction for the second pricing window in the month of March.

The Executive Secretary of COPEC, Mr Duncan Amoah, told the Daily Graphic that: “Ideally prices should have gone down
by 10 per cent or some GHp56 per litre to reflect international market movements over the past four weeks.”

“Crude has declined further from $36 per barrel to around $28 per barrel currently since the last major reductions of some cumulative 31 per cent overnight around March 8.” he said.

COPEC unhappy

Mr Amoah said: “It is disappointing to say the least that markets since January 2020 have not reflected even 10 per cent of reductions although global price movements have gone down by over 31 per cent within the same period; the cedi has also gained in excess of five per cent within the period to close trading at GH¢5.38 to a dollar from the previous $5.85 to a dollar.

It is our expectation that fuel prices will be reduced further by the oil Marketing companies and the Bulk oil Distribution Companies (BDCs) to reflect world market trends or figures”.

Direct public reaction

Meanwhile, a random interview with some motorists revealed that as much as they have been swayed by the outbreak of the COVID-19, they have not forgotten about the refusal of the OMCs to behave honestly.

From two stations at Ogbojo and East Legon near the American House, Mr Tsarles Ansong and another person who only gave her name as Laura respectively described the action of the OMCs as nothing but a rip-off.

“It is a complete rip-off because whenever the global dynamics such as a depreciating cedi and increased crude oil prices happen, they have every reason to increase the prices but the reverse is not the case,” angry looking Laura said.

Mr Ansong, for his part, wondered why the OMCs would behave in a manner as experienced because according to him, “taking undue advantage of your customers is a big shame and must be condemned in no uncertain terms”.

He expressed the hope that the players in the industry would allow what he described as ‘common sense’ to prevail.

COVID-19 collapses oil prices

Oil’s spectacular collapse deepened as widening global efforts to fight the spread of the coronavirus (COVID-19) is triggering the most severe contraction in annual demand in history.

Oil crude prices on the global markets continue to dip. As of yesterday, Bloomberg reported that Brent traded down 54 cents at $29.51 a barrel on the ICE Futures Europe exchange as of 12:46 p.m. in London. The West Texas Intermediate (WTI) fell 13 cents, or 0.5 per cent, to $28.57 a barrel on the New York Mercantile Exchange.

There seem to be a direct hit from the COVID-19. As airlines cut more flights and a growing number of countries go into lockdown, oil markets are reportedly facing a glut. The slump in demand is coinciding with a flood of supply as Saudi
Arabia and Russia engage in a price war for market share.

Good and bad

To consumers of petroleum products, the phenomenon is a good omen because of the impact on the prices of petroleum
products at the local pumps.

The sad news however, will be on the government because its projected revenues from oil production in the country will have to be revised if the situation continues.

Meanwhile experts are projecting a further slum in prices of the black gold on the international market to about $20 before it rises slowly to its normal levels.