In a medium saucepan, set over low heat, combine the ketchup, sugar, vinegar, Worcestershire sauce, chili powder, salt, garlic powder, onion powder, paprika and pepper.
Increase the heat to medium and bring the sauce to a simmer, then reduce the heat to medium-low and cook, stirring often, until the sugar has completely dissolved and the sauce is slightly thickened, about 5 minutes. Remove the sauce from heat, transfer to a heat proof jar and let cool completely.
Store in an airtight container, refrigerated for 2 to 4 weeks.