Motorists could soon experience fuel price changes almost every day instead of the long-established fortnightly adjustments, following a major shift by Bulk Oil Distribution Companies (BDCs) to spot pricing amid heightened volatility in the global oil market.

The development could fundamentally alter Ghana’s downstream petroleum pricing regime, allowing Oil Marketing Companies (OMCs) to respond more quickly to fluctuations in international fuel prices and exchange rates rather than waiting for the traditional pricing windows on the 1st and 15th of each month.

The shift comes after several OMCs increased pump prices multiple times during the current pricing window that began on July 16, citing rising international petroleum prices and exchange rate movements.

Chief Executive of the Chamber of Bulk Oil Distributors, Dr Kweku Ofori, said the industry’s pricing model had changed significantly because of the increasing unpredictability of global crude oil prices.

According to him, most BDCs now sell petroleum products to OMCs based on prevailing spot market prices, while others rely on daily pricing triggers from international oil traders.

“The move has been influenced by volatility in crude prices on the world market,” Dr Ofori told JoyBusiness.

“We could now be moving away from prices reviewed by the oil marketing companies every two weeks to every day.”

He explained that the traditional pricing model has become increasingly difficult to sustain as international fuel prices fluctuate sharply within short periods.

Dr Ofori also defended the recent wave of mid-window pump price increases, insisting they were fully consistent with existing industry regulations.

“It is absolutely justified. BDCs and OMCs are allowed to adjust their prices during the window. The OMCs only need to justify their price adjustment to the National Petroleum Authority,” he said.

The comments come amid growing public concern over frequent increases in fuel prices, with some retailers adjusting pump prices two or three times within a single pricing window.

Oil marketing companies argue that the adjustments simply reflect rising replacement costs.

In a social media post on July 24, Star Oil Chief Executive Philip Tieku said international gasoline prices had increased by nearly 20 percent, while diesel prices had risen by approximately 25 percent since the current pricing window began.

He added that the depreciation of the Ghana cedi against the US dollar had further increased the cost of importing petroleum products.

According to Tieku, the industry’s increasing reliance on daily cash-and-carry purchases means each new consignment is priced using prevailing international market prices and current exchange rates.

He said delaying pump price adjustments under such conditions would create arbitrage opportunities and expose retailers to significant financial losses.

Another major oil marketing company, which requested anonymity, also defended the practice, explaining that the National Petroleum Authority’s pricing guidelines permit adjustments whenever ex-refinery prices increase within an existing pricing window.

The company noted that because BDCs are now reviewing ex-refinery prices daily in response to movements on the international market, OMCs have little option but to reflect those changes at the pumps.

However, it assured consumers that any decline in international petroleum prices would also be passed on quickly, allowing motorists to benefit from lower prices without waiting for the next pricing window.

Industry analysts say the shift towards spot pricing reflects broader changes in global energy markets, where heightened geopolitical tensions and supply uncertainties have increased price volatility.

If the trend continues, Ghana’s downstream petroleum sector could move permanently away from the fortnightly pricing model that has governed fuel price adjustments for years.

Attention is now turning to the National Petroleum Authority, whose response could determine whether daily fuel price adjustments become the new norm or whether additional regulatory measures are introduced to preserve greater price stability for consumers.