The Ghana Chamber of Bulk Oil Distributors (CBOD) has provided assurance to consumers that fuel prices are unlikely to see a significant increase by the end of April. According to the Chamber’s evaluation of various price determinants, including the exchange rate, stability has been observed over the past week. This suggests that prices of petrol, diesel, and LPG may remain relatively unaffected.
“Despite the fear-mongering that the dollar was going to close at GH¢14, it has been relatively stable, which is much better than what happened in previous weeks.
“The price is now GH¢14.99 (per litre). It may reach GHS18 (per litre) unless the dollar hits maybe GH¢15, but I can’t foresee the dollar reaching even GHS14 by next week,” he said.
The Chief Executive Officer of CBOD, Dr. Patrick Kwaku Ofori, addressed the media to challenge assertions that petrol and diesel prices could surge to GH¢18 per litre by next week. He emphasised the need for caution among both the public and “energy experts” against making hasty predictions that could induce panic among consumers and disrupt investment in the sector. Dr. Ofori expressed concern about the potential repercussions of such speculation on consumer behavior and price volatility at fuel stations.
“We should be guided by our statements. Forex commodities are sensitive to key elements within the sector and the economy. When people make certain speculative projections, we need to investigate further,” he said.
After a period of relative stability, fuel prices have seen consecutive increases over the past four weeks, driven by spikes in international prices and the depreciation of the Cedi against the US Dollar.
Presently, petrol and diesel are priced at an average of GH¢14.99 and GH¢14.80 per litre respectively at the pumps.
Dr. Ofori emphasized that the performance of the Cedi against the Dollar and international market prices are the primary drivers behind recent fuel price hikes. He noted that the Chamber is exploring innovative strategies to improve access to foreign exchange and alleviate pressure on the Cedi.
Addressing claims that bulk oil distributors benefit from fuel price hikes, Dr. Ofori clarified that sometimes, the BDCs incur losses if their projections of the forex market exceed expectations.
Regarding the international market, he expressed concern over ongoing tensions in the Middle East and warned that escalation in exchanges between Israel, Iran, and Gaza could impact global fuel prices.
Source: Energy Ghana