Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has attributed the latest increases in fuel prices in Ghana to developments on the international oil market, insisting that the hikes are being driven by global geopolitical tensions rather than government policy.
His comments come amid growing concerns among motorists over rising pump prices, with recent adjustments reflecting increases in international crude oil prices and the cost of imported petroleum products.
Duncan Amoah explained that the recent escalation in hostilities involving Iran and the United States had pushed global crude oil prices higher, with the impact filtering through to Ghana’s deregulated downstream petroleum market.
“You cannot blame the government for that one. The increase we are seeing is as a result of external factors,” he said.
According to Amoah, Ghana’s petroleum pricing regime is fully deregulated, requiring oil marketing companies (OMCs) to recover their import costs and maintain profitability without depending on government subsidies.
“The market is completely deregulated, which means full cost recovery plus a mark-up. So don’t import and sell to make losses with the hope that government would have a subsidy programme in place for you to recoup anything,” he explained.
He noted that international benchmark prices have become increasingly bullish due to the geopolitical tensions in the Middle East, particularly the conflict involving Iran and the United States.
“International benchmarks are bullish as we are seeing because of the Iranian-American hostilities. Brent for some hours pushed a little above 100 again, and it’s concerning,” Amoah stated.
The COPEC Executive Secretary also pointed to sharp increases in the prices of refined petroleum products on the international market, saying the trend has inevitably translated into higher prices at local fuel stations.
“If you check what is happening even with the price of finished products, things that were hovering around 850, 870, today are above 1,000. That should tell you that prices are simply inching upwards, and so your local market is simply responding to that movement,” he said.
Amoah stressed that under Ghana’s deregulated petroleum market, oil marketing companies have little choice but to adjust pump prices in line with prevailing international market conditions to avoid operating at a loss.
“What that means is that if prices go up, the market should be careful not to sell below a certain threshold so as to accumulate losses. Because when that happens, it’s your own problem. You will go under and the state cannot do anything to help you,” he added.
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