Fuel Prices Expected to Rise Sharply in Next Pricing Window – COMAC Warns

Fuel prices may see a significant jump in the upcoming pricing window, the Chief Executive Officer of the Chamber for Oil Marketing Companies (COMAC), Dr Riverson Oppong, has warned.

He noted that although consumers have enjoyed some stability at the pumps in recent weeks, largely supported by the strengthening of the Ghanaian cedi, the outlook for the next pricing cycle suggests a possible sharp upward adjustment.

Speaking on in a media interview, Dr Oppong explained that the cedi’s recent appreciation played a crucial role in shielding consumers from what could have been steeper fuel costs.

“The prices of crude oil in this current window were high, but due to the performance of the cedi, we didn’t feel it like we were supposed to. Because the cedi appreciated against the dollar, the price was down, while the international benchmark price remained fairly stable,” he said.

He stressed that the availability of the United States dollar on the local market continues to be a major determinant of fuel pricing since oil imports are denominated in dollars. “The availability of the dollar and how you buy the dollar is very important,” he added.

Dr Oppong explained that COMAC’s price projections are influenced mainly by movements in the exchange rate and global benchmark oil prices. “Exchange rates and the international benchmark price of oil are the main components. Taxes and levies remain constant, so our analysis focuses primarily on these two factors,” he noted.

He further highlighted challenges facing Oil Marketing Companies (OMCs), particularly the currency mismatch they face in their operations.

“We buy the oil with USD but sell in cedis, so how you sell matters. The rates can be down, yet there may be no dollars on the market and that alone can increase the price because it becomes a matter of demand and supply,” he said.

Beyond immediate pricing concerns, Dr Oppong pointed to Africa’s slow pace in transitioning away from fossil fuels compared to the rest of the world. He warned that without deliberate measures to shift towards cleaner and more sustainable energy sources, the continent, including Ghana will continue to grapple with unpredictable fuel prices.

“The world is going through an energy transition phase where everyone is moving away from diesel and petrol as primary sources of power, but for Africa, and Ghana inclusive, the narrative is very different,” he said. “It’s possible that for the next window, prices will increase significantly.”

The next pricing window will reveal how these market dynamics, exchange rate trends, global oil movements and local forex availability will shape the cost of fuel for consumers nationwide.