Fuel pricing norm broken as market turns ‘radically volatile’ – COMAC CEO
The CEO of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, says Ghana’s fuel market has entered an unusually volatile phase, forcing oil marketing companies (OMCs) to respond in ways rarely seen under the country’s pricing system.
Dr Riverson Oppong, the CEO of the Chamber of Oil Marketing Companies (COMAC), has warned that Ghana's fuel market is experiencing highly volatile conditions following recent price increases. In an interview on JoyNews' PM Express Business Edition, Dr Oppong highlighted the impact of global market disruptions caused by the conflict between the United States and Iran.
Prior to the conflict, oil marketing companies (OMCs) had resisted raising pump prices despite the increased costs for bulk distribution companies. However, as the market shifted, OMCs began changing prices within the allowed window, marking the first time such volatility had been observed. Dr Oppong attributed the fluctuating global crude oil prices to the sharp swing from $100 per barrel to the current $70s, questioning why consumers have not seen the same reduction in pump prices as the international oil prices have dropped.
He also expressed concerns over whether the current pricing framework is adequate in these volatile circumstances, suggesting a potential shift towards daily spot pricing. The COMAC CEO also pointed out that despite the decrease in crude oil prices, the cost of importing fuel remains high due to increased premiums and logistics costs.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
