Fuel prices are expected to rise sharply in the upcoming pricing window, according to Dr. Riverson Oppong, CEO of the Chamber of Oil Marketing Companies (OMCs).
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Speaking on Channel One TV on Tuesday, June 17, Dr. Oppong warned that despite a marginal drop in prices this week, global market pressures and currency volatility point to a significant increase ahead. “You’re currently benefitting from a reduction this week, but I can’t promise for next week,” he cautioned.
This week’s slight relief, he explained, came largely from a temporary government suspension of the GH¢1 fuel tax, without which prices would have increased by nearly 9.5%. “When the directive came in on Saturday to suspend the GH¢1, it stabilized things. The slight cedi appreciation balanced out rising international benchmark prices,” he said.
Despite the suspension, pump prices only dropped by about 2%, falling short of public expectations.
Looking ahead, Dr. Oppong warned of a much steeper hike in the next window. He expressed concern that Bulk Distribution Companies (BDCs) and Oil Marketing Companies (OMCs) might hoard fuel in anticipation of higher prices and profit margins.
“Next week, two things might happen: BDCs could hoard product, and even OMCs might do the same. It’s almost certain that prices will go up,” he stated.
The Chamber is currently engaging the Chamber of Bulk Oil Distributors (CBOD) and other stakeholders to prevent hoarding and reduce the risk of supply disruptions. “We’re working to manage this, but for the next window, for sure, things will go up,” Dr. Oppong concluded.
