Oil drops by 3% to reflect reductions on market

Crude oil prices keep plummeting. The commodity is being traded at about 87 dollars a barrel on the international market on Monday.

If this development continues coupled with the Bank of Ghana’s ability to provide enough forex at a good rate for the BDCs, fuel prices in Ghana are likely to decline at the pumps in the next pricing window on December 1, 2022.

Oil prices keep dropping after it decreased by more than 2 dollars a barrel on Friday for a second weekly decline. This is due to concern about weakened demand in China and further increases to U.S. interest rates.

Brent crude is down by 0.72 percent and is being offered at 86 dollars 99 Cents a barrel having reached its lowest level since September at 85 dollars 80 Cents. Should this decline persist petroleum consumers would heave a sigh of relieve as prices could drop a little further.

A strong Cedi could make this a reality. Currently, price of diesel has dropped from GH¢23.49 a litre to GH¢20.50 a litre. Petrol also reduced from GH¢17.99 to GH¢16.82 per litre.

Liquified Petroleum Gas has not witnessed a decline on the international market and will increase in the next pricing window, December 1, 2022.