The CEO of the Chamber of Oil Marketing Companies (OMCs), Dr Riverson Oppong, has warned that fuel prices are expected to surge significantly in the upcoming pricing window, despite the marginal drop recorded this week.
Speaking on Channel One TV on Tuesday, 17th June, Dr Oppong explained that although consumers are currently experiencing a slight reprieve at the pumps, underlying global market pressures and currency fluctuations suggest a major price hike is imminent.
“You’re currently benefitting from a reduction this week, but I can’t promise for next week,” he cautioned.
Dr Oppong revealed that this week’s modest relief was largely due to a temporary government directive suspending the GH¢1 tax component. Without that suspension, he said, fuel prices would have jumped by approximately 9.5 per cent.
“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 suspension, consumers saw only about a 2 per cent reduction at the pump, far below expectations.
Dr Oppong warned that the next pricing window could see a much sharper rise, prompting concerns over potential hoarding by Bulk Distribution Companies (BDCs) and Oil Marketing Companies in anticipation of better profit margins.
“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 added that the Chamber was currently in discussions with the Chamber of Bulk Oil Distributors (CBOD) and other stakeholders to mitigate the risk of hoarding, which could further disrupt supply and place additional strain on consumers.
“But for next window, for sure, things will go up,” Dr Oppong affirmed.
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