Fuel prices are expected to rise sharply in the next pricing window, despite the marginal decrease this week, says the Chief Executive Officer of the Chamber of Oil Marketing Companies (OMCs), Dr. Riverson Oppong.
He sounded this caution during a one-on-one interview with Channel One TV on Tuesday, June 17, where he stated that the fall in prices has been disrupted by rising prices on international markets.
He also said that the decreases stood due to government directives as well as the temporary suspension of the fuel levy, saying that had the GH¢1 tax component not been suspended by the government, fuel prices would have seen a 9.5% increase this week.
“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,” Dr. Oppong said.
“You’re currently benefitting from a reduction this week, but I can’t promise for next week,” Dr. Oppong stated. “At the closing day of the last window, we had old stock, so we are selling it at the prevailing prices,” indicating that things might be different in the next window, which is next week.
Dr. Oppong predicts that Bulk Distribution Companies (BDCs) and OMCs might hoard products in anticipation of higher margins. However, he plans to engage the Chamber of Bulk Oil Distributors (CBOD) to discuss how to avoid this situation.
“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 because they want to wait for the next window,” he disclosed.
The CEO’s input comes amid the growing concerns over tensions in the Middle East, causing the global prices of fuel to skyrocket.
