Fuel prices won’t cross GH¢18 mark next week – CBOD assures consumers

The Ghana Chamber of Bulk Oil Distributors (CBOD) has reassured consumers that fuel prices are not likely to increase dramatically by the end of April this year.

The Chamber stated that its assessment of the factors affecting prices at the pumps, particularly the exchange rate, has remained stable in the last week. Therefore, there may not be a significant impact on the prices of petrol, diesel, and Liquefied Petroleum Gas (LPG).

Speaking to journalists in Accra, Dr. Patrick Kwaku Ofori, Chief Executive Officer of CBOD, dismissed reports claiming that prices of petrol and diesel would reach at least GH¢18 per litre by next week.

“Despite the fear-mongering that the dollar was going to close at GH¢14, it has been relatively stable, which is much better than what happened in previous weeks.

“The price is now GH¢14.99 (per litre). It may reach GHS18 (per litre) unless the dollar hits maybe GH¢15, but I can’t foresee the dollar reaching even GHS14 by next week,” he said.

Dr. Ofori urged the public and "energy experts" to refrain from making uninformed projections that could cause fear among consumers and affect investments in the sector.

He expressed concern about the impact of such speculation on consumer behaviour and the volatility of prices at the pumps.

Dr. Ofori announced plans by CBOD to organize training courses for journalists on the components of fuel pricing and market dynamics, among other informative engagements, to reduce misinformation about fuel pricing.

“We should be guided by our statements. Forex commodities are sensitive to key elements within the sector and the economy. When people make certain speculative projections, we need to investigate further,” he said.

After maintaining relative stability for months, fuel prices have experienced repeated increases in the last four weeks, with analysts attributing the situation to spikes in international prices and depreciation of the Cedi against the US Dollar.

Currently, petrol and diesel are trading at an average of GH¢14.99 and GH¢14.80 per litre at the pumps.

Dr. Ofori stated that the performance of the Cedi against the Dollar and prices on the international markets were the major factors influencing fuel price hikes in recent weeks.

He mentioned that the Chamber is exploring innovative approaches to enhance access to forex and reduce pressure on the Cedi.

Contrary to claims that bulk oil distributors benefit from fuel price increments, Dr. Ofori explained that the BDCs sometimes incur losses if their projections of the forex market exceed expectations.

Assessing the situation on the international market, he expressed concern that ongoing tensions in the Middle East could affect global fuel prices if the exchanges between Israel, Iran, and Gaza escalated.

“We do not want the situation to escalate. Once it does, we can expect oil prices to rise,” he said.