The Chamber of Bulk Oil Distributor Companies (CBOD) has advised Bulk Oil Distribution Companies (BDCs) to revise their trade credit tenor from the current forward foreign exchange rate from the average 60-day to 30-day forward rate.
It stated that the adoption of a 30-day forward rate instead of a 60-day forward rate can reduce pump prices by about 2%.
This, the chamber said would help reduce consumer prices at the pump.
These are contained in the CBOD Petroleum Price Outlook, which is the price indicator for the first selling window of August 1 to 15, 2019.
The forward forex rate used is the average of the quoted indicative forward forex rate from major oil financing banks adjusted by the covered-interest parity pricing model.
The 60-day forward rate is computed as the average of selected major oil financing banks.
It is to be applied for the first selling window of August 2019 is GHS5.60 for $1.