(3 Minutes Read)
The Chief Executive Officer of the Chamber for Oil Marketing Companies (COMAC), Dr. Riverson Oppong, has cautioned that fuel prices in Ghana may rise sharply in the next pricing window. This potential increase comes despite a period of relative price stability at the pumps, largely attributed to the recent strengthening of the Ghanaian cedi.
In a media engagement, Dr. Oppong highlighted that the appreciation of the cedi played a key role in moderating fuel prices during the current window. According to him, although global crude oil prices remained elevated, the stronger cedi mitigated what could have been a substantial price hike.
“Crude oil prices were high during this window, but the performance of the cedi cushioned consumers. The currency’s appreciation helped lower prices even though international benchmark prices remained fairly stable,” he explained.
Dr. Oppong reiterated that the availability and cost of the United States dollar on the local market continue to be major determinants of fuel pricing, given that oil imports are dollar-denominated. He stressed that fluctuations in forex supply can directly influence pump prices, regardless of broader market trends.
He noted that COMAC’s pricing forecasts are primarily shaped by exchange rate movements and global benchmark oil prices, as taxes and statutory levies remain unchanged. He also drew attention to operational challenges facing Oil Marketing Companies (OMCs), particularly the currency mismatch inherent in buying fuel in dollars and selling in cedis. “We purchase fuel in USD but sell it in cedis. Even when the exchange rate appears favourable, scarcity of dollars can drive prices up due to demand and supply pressures,” he said.
Looking beyond immediate pricing issues, Dr. Oppong expressed concern about Africa’s slow transition from fossil fuels relative to global energy trends. He warned that without deliberate action toward cleaner and more sustainable energy sources, Ghana and the continent at large will continue experiencing volatile and unpredictable fuel prices.
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“Globally, the shift away from petrol and diesel is accelerating, but Africa—and Ghana in particular—is lagging behind. This could contribute to significant price increases in subsequent pricing windows,” he noted. As the next pricing window approaches, the interplay between exchange rate dynamics, global oil price developments and local forex availability will be decisive in determining fuel costs for consumers nationwide.
