The Chief Executive Officer of the Chamber of Oil Marketing Companies (OMCs), Dr. Riverson Oppong, has issued a warning that fuel prices are likely to surge significantly in the next pricing window, despite a minor drop recorded this week.
In an interview with Channel One TV on Tuesday, June 17, Dr. Oppong noted that although consumers are currently enjoying slight relief at the pumps, global market pressures and exchange rate fluctuations point to a sharp price increase ahead.
“You’re currently benefitting from a reduction this week, but I can’t promise for next week,” he cautioned.
Dr. Oppong attributed this week’s minimal reduction in prices to a temporary government directive that suspended the GH¢1 tax component. Without the suspension, he explained, fuel prices would have risen by about 9.5 percent.
“When we got the directive on Saturday that the GH¢1 had been suspended, it brought things to the same level because, as the cedi was appreciating just a little bit, the international benchmark prices were also going up just a little bit. So they actually buffet at a point,” he explained.
Despite the tax relief, consumers experienced only around a 2 percent drop in pump prices, far less than expected. Dr. Oppong warned that the next pricing window could see a much steeper increase.
He also raised concerns that Bulk Distribution Companies (BDCs) and Oil Marketing Companies (OMCs) might begin hoarding products to capitalize on future price hikes.
“Next week, two things might happen…you might see BDCs hoarding product waiting for the next window, because for sure it will go up 100%. You’ll even see OMCs hoarding fuel,” he disclosed.
He further noted that the Chamber is engaging with the Chamber of Bulk Oil Distributors (CBOD) and other stakeholders to curb hoarding activities, which could disrupt supply and worsen the burden on consumers. “But for the next window, for sure, things will go up,” Dr. Oppong affirmed.
