The Energy Minster of Ghana has assured Ghanaians that a possible review of fuel prices will be on March 16 at the opening of the next pricing window.
Offering some assurances, the Head of Communications and Public Affairs at the Energy Ministry, Nana Damoah said: “there will be some significant reduction on the prices of fuel at the pump” when the window opens.
According to the Energy Ministry, the wait till March 16 is in line with Ghana’s deregulation policy, Mr. Damoah.
“We can only review fuel prices over two weeks. The next pricing window opens up on the 16th of March 2020. The government, therefore, cannot intervene at this point to cause a reduction in prices against the stated policy of deregulation.”
The Ministry’s comments are in response to calls for a reduction in fuel prices by the National Democratic Congress and some industry players after oil prices saw their lowest drop since 1991 on Monday. This is after Saudi Arabia started a fuel price war with Russia by slashing its selling prices.
The NDC wants the government to ensure fuel prices are reduced by a minimum of 20%.
There has been a decline in demand because of the novel coronavirus and a row between Russia and Saudi Arabia.
Saudi Arabia slashed the cost of oil over the weekend after it failed to convince Russia on Friday to commit to steep production cuts.
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Saudi Arabia also pledged to release its pent-up supply onto the market which is currently facing falling demand because of the coronavirus outbreak.
Prior to this huge slash, crude prices had been relatively stable. Observers have said prices are generally expected to go down significantly at the pumps, to ease pressure on consumers.
Brent crude futures fell by as much as $14.25, or 31.5%, to $31.02 a barrel. That was the biggest percentage drop since Jan. 17, 1991, at the start of the first Gulf War and the lowest since February 12, 2016. It was trading at $35.75 at 0114 GMT.
