The Chamber of Oil Marketing Companies (OMCs) has warned that consumers may face higher fuel prices in the next pricing window, citing global oil price fluctuations, a weaker cedi, and the possibility of fuel hoarding by distribution chain actors.
Dr. Riverson Oppong, CEO of the Chamber, said in an interview with Channel One TV on Tuesday, June 17, that this week’s slight fuel price decline could be temporary.
“You’re currently benefitting from a reduction this week, but I can’t promise for next week,” Dr. Oppong said, attributing the modest relief at the pumps to a temporary suspension of a GH¢1 tax by the government. Without the intervention, petrol prices may have risen by much to 9.5%.
He noted that, while the local currency appreciated slightly, worldwide benchmark oil prices rose at the same time, cancelling out the predicted benefit.
“When we got the directive on Saturday that the GH¢1 had been suspended, it brought things to the same level,” according to Dr. Oppong. “So they actually buffet at a point.”
As a result, buyers only witnessed a 2% price cut, which was far lower than expected.
Looking ahead, Dr. Oppong expected a significant increase in prices in the following week and warned of potential market disruptions due to stockpiling.
“Next week, two things could happen…” You may notice BDCs storing merchandise in anticipation of the next window, which will undoubtedly increase by 100%. “You’ll even see OMCs hoarding fuel to wait for the next window,” he warned.
To mitigate this, the Chamber is working with partners, notably the Chamber of Bulk Oil Distributors (CBOD), to discourage such behaviours. “But for the next window, for sure, things will go up,” Dr. Oppong confirmed.
The fuel price projection adds to public concern about pump prices, which have become increasingly erratic due to a combination of international and domestic economic forces.
Meanwhile, Nana Amoasi VII, Executive Director of the Institute for Energy Security (IES), has asked the government to exercise caution while implementing additional gasoline taxes or levies. He cautioned that a hasty return of the GH¢1 fuel fee could harm public trust.
“This will be challenging. I’m not sure Ghanaians will want to see a government that promised to decrease taxes and levies implement one that will immediately raise fuel prices for them and cause discomfort.
” he stated.
He urged that any such policy action should be carefully planned to coincide with favourable market circumstances and a stronger cedi in order to mitigate the impact on consumers.
