The Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), Dr. Riverson Oppong, says unprecedented volatility in the international oil market is disrupting Ghana’s traditional fuel pricing cycle and forcing Oil Marketing Companies (OMCs) to make unusual price adjustments.
His comments come as government implements a GH¢2-per-litre intervention on diesel to cushion consumers and businesses following recent increases in petroleum prices.
Speaking on JoyNews’ PM Express Business Edition on Thursday, Dr. Oppong said the conflict between the United States and Iran has created significant uncertainty in the global oil market, making it increasingly difficult for OMCs to operate within the country’s conventional pricing windows.
He said OMCs initially held their pump prices steady when the conflict began, despite increases in the prices charged by Bulk Distribution Companies (BDCs).
According to him, the current situation is unusual because OMCs are now adjusting pump prices even before the end of an established pricing window, something he said has rarely occurred in recent years.
Dr. Oppong attributed the development to the sharp fluctuations in international crude oil prices, noting that prices had surged to around US$100 per barrel before falling back into the US$70 range.
He questioned why the decline in global crude prices has not translated into equally significant reductions at the pump in Ghana.
The CEO also raised questions about whether the existing two-week fuel pricing cycle remains appropriate in an environment where international prices can change significantly within days.
He suggested that the National Petroleum Authority (NPA) may need to consider whether a shift towards daily spot pricing would be more suitable under the current market conditions.
Dr. Oppong explained that the cost of importing petroleum products remains high despite the recent decline in crude oil prices. He attributed this partly to higher premiums, freight charges and insurance costs associated with the heightened geopolitical risks.
According to him, the ongoing conflict has increased insurance costs globally, while higher freight expenses have also contributed to the elevated cost of bringing petroleum products into Ghana.
He said these additional costs continue to influence fuel prices in the domestic market, even as international crude prices ease.