The Ghana Chamber of Bulk Oil Distributors (CBOD) has warned of an upward adjustment of fuel prices in the country if the ongoing tensions in the Middle East escalate.
According to Dr Patrick Kwaku Ofori, CEO of CBOD, fuel price hikes are mainly driven by the Cedi’s performance against the Dollar and fluctuations in international oil markets. He also expressed concern over potential global impacts if ongoing tensions in the Middle East escalate, specifically involving 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 cautioned.
During a press briefing in Accra, Dr Ofori refuted recent reports indicating that petrol and diesel prices could reach GHS18 per litre within the next week.
He said fuel prices are unlikely to rise significantly by the end of April, despite earlier concerns. The Chamber’s assessment of key variables influencing fuel prices, particularly the exchange rate, shows stability, suggesting that the costs of petrol, diesel, and Liquefied Petroleum Gas (LPG) will not see a dramatic increase.
“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.
The CBOD chief urged the public and “energy experts” to avoid making unfounded predictions that might cause unnecessary alarm among consumers and impact investment in the oil sector.
He stressed the importance of responsible communication, given the sensitivity of forex commodities to speculation.
“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.
After months of relative stability, Ghana has experienced several fuel price hikes in recent weeks, which analysts attribute to rising international oil prices and the depreciation of the Ghanaian Cedi against the US Dollar. Currently, petrol and diesel prices at the pumps are at an average of GHS14.99 and GHS14.80 per litre, respectively.
