Fuel prices set to remain unchanged at pumps for two weeks

Motorists may avoid a fuel price increase for now after the government asked two local refineries to maintain their current prices. The Tema Oil Refinery (TOR) and Sentuo Oil Refinery have been instructed to continue supplying Oil Marketing Companies (OMCs) at their existing prices for at least the next two weeks. The directive is expected to prevent higher refinery prices from quickly translating into increases at the pumps as global oil prices rise. The intervention comes alongside the government’s GH¢2 per litre subsidy on diesel, which is also aimed at limiting the impact of higher fuel costs on consumers. 9 Fuel Price Hikes in 7 Months: See how much Ghanaians are now paying Chief Executive of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, said maintaining the refineries’ prices could help keep pump prices stable in the short term. He explained that the Supplier Reference Exchange Rate (SREF) is a major component in determining fuel prices at the pumps. “Because the SREF is a very big indicator in the determination of the S pump. So, as long as your SREF does not change, as we know, basically your S pump should also reflect the same,” he said. Dr Oppong said fuel prices in Ghana are based on the actual cost of getting fuel to consumers, meaning changes in costs can lead to changes at the pumps. “You know, I mean, we operate a very systematic standard. We’re creating that standard, which in petroleum economics we call the cost-reflective pricing,” he said. He explained that taxes, levies and other costs are included in the pricing structure, while OMCs determine their margins separately. “So whatever cost we incur, be it the SREF taxes and levies that are today being reviewed, we surely would add that, considering that our margin is what we set. Everything else is based on the industry price,” he said. He noted that the industry would review the directive to determine how it would affect pump prices. 10 women leading major companies and institutions in Ghana Asked if prices could change by Saturday or Monday, he said the industry would first assess the directive and its impact on fuel prices. “Hopefully, because this narrative was passed with certain lines, and now we are going to review it,” he said. For now, motorists are expected to continue buying fuel at the current prices. DR/MA Inside Ghana’s Abandoned Engineering Powerhouse: What Went Wrong? Source: www.ghanaweb.com
« Previous | Next »