The Ghana Chamber of Bulk Oil Distributors (CBOD) has moved to calm the concerns of consumers regarding potential astronomical increases in fuel prices by the end of April 2024.
Assuring the public, the Chamber emphasized that their assessment of the various factors influencing pump prices, particularly the exchange rate, has shown stability in the past week.
They further stated that this stability is not likely to significantly impact the prices of petrol, diesel, and Liquefied Petroleum Gas (LPG).
Addressing reporters in Accra, Dr. Patrick Kwaku Ofori, CEO of CBOD, refuted reports suggesting that petrol and diesel prices could soar to at least GH¢18 per litre by the following week.
“Despite the fear mongering that the dollar was going to close at GHS 14, to be fair, it has been relatively stable, which is far better than what happened the previous weeks.
“Now the price is GH¢14.99 (per litre). It’ll get to GH¢18 (per litre) unless the dollar hits maybe GHS15 but I can’t foresee the dollar hitting even GHS14 by even next week,” he said.
Dr. Ofori urged both the public and “energy experts” to refrain from making uninformed projections that could incite fear among consumers and impact investments in the sector.
Expressing concern over the effect of such speculation on consumer behavior and the volatility of pump prices, he announced the Chamber’s intentions to conduct training courses for journalists. These courses would cover the components of fuel pricing, market dynamics, and other informative topics aimed at reducing misinformation surrounding fuel pricing.
“We should be guided with some of our utterances. Forex commodities are sensitive to key elements within the sector and the economy. When people make certain speculations that are projections, we need to probe further,” he said.
Fuel prices, which had maintained relative stability for several months, experienced successive increases over the past four weeks. Analysts attribute this trend to a surge in international prices and the depreciation of the Cedi against the US Dollar.
At present, petrol and diesel are priced at an average of GHS14.99 and GHS14.80 per litre, respectively, at fuel stations.
Dr. Ofori highlighted that the performance of the Cedi against the Dollar and fluctuations in international markets were the primary factors influencing recent fuel price hikes.
He also mentioned that the Chamber is actively seeking innovative solutions to improve access to foreign exchange and alleviate pressure on the Cedi.
Contrary to assumptions that bulk oil distributors profit from fuel price increases, Dr. Ofori clarified that sometimes, Bulk Distribution Companies (BDCs) incur losses if their forex market projections exceed expectations.
Assessing the situation on the international market, he expressed concerns about potential impacts on global fuel prices if tensions in the Middle East, particularly between Israel, Iran, and Gaza, escalate further.
“We do not want the situation to escalate. Once it escalates, we should be certain that oil prices will go up,” he said.