Bulk Oil Distribution Companies (BDCs) undertook a substantive transaction with the Bank of Ghana (BoG) on January 30, 2024.
Seizing the opportunity presented by the central bank’s forex forward auction, these entities collectively acquired $20 million at a rate of GHS 12.39 per US dollar.
This is the second of such many forex forward auctions scheduled to take place in the first quarter of 2024.
Participation in the auction saw fourteen BDCs submitting bids within a spectrum of GHS 12.10 to GHS 12.29.
The strategic alignment of these bids with the BoG’s established forex forward rate of GHS 12.39 underscores the central bank’s concerted efforts to assuage uncertainties surrounding foreign exchange availability, particularly within the critical downstream sector responsible for pricing imported fuel.
This successful auction is poised to play a pivotal role in anchoring stability in fuel prices at retail pumps.
Noteworthy is the Bank of Ghana’s earmarking of $120 million for forex auctions for the first quarter of 2024, a testament to its unwavering dedication to buttress BDCs engaged in fuel imports and, by extension, sustain stability in fuel prices.
This proactive stance by the Bank of Ghana is integral to a comprehensive strategy aimed at nurturing a stable forex market and safeguarding overarching price stability.
Meanwhile, fuel prices on Thursday, February 1, 2024, recorded an average 2.3 percentage points increment.
Per the IES, the marginal increase in the price of finished petroleum products was a result of the depreciation of the cedi.
“Consumers going to the pumps from February 1 are likely to see the following changes: an increase in the price of Gasoline [petrol] by 2%, 3% increase in price Gasoil [diesel] and 2% increase in LPG price largely as a combined effect of the Ghana cedi depreciation and the international market price rise for the products,” the IES said.
The projected price increment in petrol, diesel and LPG, gives an average price increment of 2.3%.
TOTAL, a leading OMC in the country was selling petrol and diesel for GHS 12.39 and GHS 13.19 respectively as of February 1, 2024.
Source:norvanreports