Customers’ concerns that fuel prices would skyrocket by the end of April this year have been allayed by the Ghana Chamber of Bulk Oil Distributors (CBOD).
The Chamber added that the scenario might not have a significant effect on the price of gasoline, diesel, and liquefied petroleum gas (LPG), saying that its evaluation of the factors that affect pricing at the pump, particularly the currency rate, had been stable during the past week.
Speaking to reporters in Accra, Dr. Patrick Kwaku Ofori, CEO of CBOD, refuted rumors that the cost of gasoline and diesel will reach GHS18 per liter by the next week.
“Despite the fear-mongering that the dollar was going to close at GHS 14, to be fair, it has been relatively stable, which is far better than what happened the previous weeks.
“Now the price is GHS14.99 (per litre). It’ll get to GHS18 (per litre) unless the dollar hits maybe GHS15, but I can’t foresee the dollar hitting even GHS14 by even next week,” he said.
Dr. Ofori pleaded with the general public and “energy experts” to stop issuing standardized forecasts that would incite consumer anxiety and affect industry investments.
The impact of such speculation on consumer behavior and the unpredictability of gas prices, he said, were concerns for the Chamber.
In an effort to combat false information about fuel prices, he disclosed that CBOD intended to host training sessions for media on the elements of fuel pricing and market dynamics, among other educational events.
“We should be guided with some of our utterances. Forex commodities are sensitive to key elements within the sector and the economy. When people make certain speculations that are projections, we need to probe further,” he said.
In the last four weeks, fuel prices have increased repeatedly after months of relative stability. Analysts attribute this to the weakening of the Cedi versus the US dollar and a jump in foreign costs.
At the pumps, the average price of gasoline and diesel is currently GHS14.99 and GHS14.80 a liter.
According to Dr. Ofori, the main factors influencing the recent increases in fuel costs were the Cedi’s value in relation to the US dollar and the pricing on global markets.
He stated that the Chamber was looking into new and creative ways to improve forex accessibility and ease pressure on the Cedi.
Contrary to assertions that bulk oil distributors profited from increases in fuel prices, Dr. Ofori stated that the BDCs occasionally suffered losses when their forecasts for the foreign exchange market proved to be inaccurate.
Taking stock of the global market, he voiced concern that if the ongoing tensions in the Middle East intensified, it may have an impact on fuel prices worldwide. These tensions are between Israel, Iran, and Gaza.
“We do not want the situation to escalate. Once it escalates, we should be certain that oil prices will go up,” he said.
