The CEO of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, says Ghana’s fuel market has entered an unusually volatile phase, forcing oil marketing companies (OMCs) to respond in ways rarely seen under the country’s pricing system.
His comments come as the government rolls out a ¢ 2-per-litre cushioning on diesel after another round of increases in petroleum prices, aimed at easing the burden on consumers and businesses.
Speaking in an interview, Dr Oppong said recent developments in the global oil market, triggered by the conflict involving the United States and Iran, have disrupted the normal fuel pricing pattern.
“Let me say we are seeing the changes in the market. Things are not easy, and my members are really adhering to it.”
He recalled that when the conflict began, OMCs initially resisted increasing pump prices even as bulk distribution companies faced rising costs.
“When this US-Iran war started, I gave this analysis. The first time we started, we were just three days in a pricing window. No single OMC added a pesewa, even though some BDCs were increasing prices. No single OMC added prices.”
According to him, the market has since behaved in a way not witnessed for a long time.
“This is the first time in a long time that we’ve seen OMCs changing prices when we are within a window, and it tells you how probably tight first of all, and how radically volatile the market has been.”
Dr Oppong pointed to the sharp swings in global crude oil prices as evidence of the uncertainty confronting the industry.
“See how we jumped to $100 per barrel, and now we are back to the $70s.”
He questioned why consumers have not seen pump prices fall at the same pace as international oil prices.
“So you ask a very simple and smart question that why is it that when everything else is now coming down, we’re not seeing that in the market just as we saw it going up?”
The COMAC CEO also raised concerns about whether Ghana’s current pricing framework remains suitable under such volatile conditions
“This is more reason why I am asking NPA a very simple question. Going to spot pricing daily changes is that an option that we want to go, or that two weeks window…”
He said the cost of importing fuel remains elevated despite the drop in crude oil prices because traders continue to face high premiums and rising logistics costs.
“As Dr. Kweku Ofori said, the premiums are high, they are doubled in the market today due to freight costs and even insurance.
“I don’t talk about the demurrage because that’s not part of my business. That’s the BDC side. But I know that the insurance globally, as we all know, because of this war, has increased.”
