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The Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), Riverson Oppong, says international crude oil prices and exchange rate movements—not government decisions—remain the biggest determinants of fuel prices in Ghana.
Speaking on the Asaase Breakfast Show on Wednesday (15 July), Oppong explained that petroleum prices are reviewed every two weeks under Ghana’s deregulated pricing system using average international fuel prices and prevailing foreign exchange rates.
“The government has no say in whatever prices we have,” he said.
“The two main derivatives that determine pump prices are the international benchmark prices and the US dollar exchange rate.”
He said recent increases in fuel prices followed renewed tensions in the global oil market after crude prices rose in the wake of comments by US President Donald Trump signalling the end of ceasefire negotiations involving Iran.
According to Oppong, earlier reductions in pump prices reflected falling international crude prices after the ceasefire.
“The sharpest reduction in crude oil prices after COVID happened following the ceasefire. But once the geopolitical situation changed, international prices responded.”
He cautioned that fuel availability does not necessarily translate into affordability.
“You can secure the product, but international prices will still determine what consumers pay.”
Cedi can cushion increases
Oppong said exchange rate appreciation could offset increases in crude prices, noting that Ghana has previously experienced situations where pump prices fell despite rising international oil prices because the cedi strengthened.
“There are moments where Platts prices went up slightly but the cedi appreciated enough to absorb the increase,” he said.
He stressed that neither Ghana nor any African government controls global oil prices.
“We don’t control crude oil prices globally. No president in Ghana or Africa controls that.”
Despite defending the pricing framework, Oppong acknowledged challenges relating to integrity within the downstream petroleum sector.
“If we solve about 85 percent of the integrity issues in the downstream sector, perhaps we wouldn’t even need a price floor,” he said.
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