COMAC explains factors behind fuel prices despite cedi appreciation
The Chamber of Oil Marketing Companies (COMAC) has clarified why fuel prices in Ghana have not dropped as much as expected, despite the recent strengthening of the cedi against the US dollar. The organization explained that fuel pricing is influenced by a combination of international and local factors, not just currency fluctuations.
In a statement responding to concerns raised by the Chamber of Petroleum Consumers (COPEC) and members of the public, COMAC emphasized that Ghana’s deregulated fuel pricing system depends on various components. These include global crude oil prices, international refined product costs, freight and insurance charges, statutory taxes and levies, as well as operational margins of Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas (LPG) distributors.
COMAC noted that current pump prices reflect inventory purchased during earlier pricing cycles when the cedi was weaker and international oil prices were higher. Since inventory turnover usually takes up to a month, price changes lag behind recent currency gains and global market shifts.
The Chamber stated: “Fuel pricing in Ghana is inventory-driven and not adjusted on a daily basis. Companies recover costs from previous purchases before passing on new price changes to consumers.” It also highlighted that OMCs operate under tight profit margins due to market competition and rising operational expenses, while continuing to invest in infrastructure and service quality.
COMAC assured the public that all members comply with regulations from the National Petroleum Authority (NPA), including transparency and regular reporting. The organization confirmed that retail outlets are closely monitored and any violations are addressed promptly.
Responding to COPEC’s claims that fuel price cuts have been insufficient given economic improvements, COMAC said further reductions may happen soon as new fuel supplies, procured under better conditions, enter the market.
“The public should understand that fuel pricing involves multiple factors and is regulated to balance market conditions with consumer interests,” the statement added.
