COPEC projects drop in fuel prices in 2024

Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has projected that 2024 could see better fuel prices, especially for consumers.

He said investments in the hydrocarbon space may result in price stability during the year.

Mr. Amoah’s comments come after some Oil Marketing Companies (OMCs) cut the prices of petroleum products at the pumps, making it the second consecutive time fuel prices have gone down in the past few months.

He said, “Usually in January, prices do cool off globally because most of the people who went for vacation in December would’ve returned, and the aviation system will probably cool off equally. Industry is also likely to cool off from the run-up numbers that they would’ve produced for the yuletide, so the demand for petroleum products globally between January and February is likely to be lower than you would’ve witnessed for the last quarter of the preceding year.”

Mr. Amoah explained that the trend would naturally remain for this first quarter of 2024, making prices a bit easier on pockets.

“Per geopolitical development, if the tension within the Middle East reduces a little bit, it is likely that 2024 will see much better fuel prices, especially for consumers,” he added.

Mr. Amoah noted that investment in hydrocarbon exploration declined, but investment in that area is coming back into the hydrocarbon space, thus leading to an increase in global production numbers.

“Once this is consistent, it’s possible to see stability in prices, unless, of course, there is a wide cut across board or a certain geopolitical development that forces the major exporters to cut back on numbers. If that doesn’t happen, I’m quite certain that 2024 could be quite stable as far as petroleum price globally is concerned,” he intimated.