The Ghana Chamber of Bulk Oil Distributors (CBOD) has moved to calm the concerns of consumers regarding potential significant increases in fuel prices by the end of April this year.
According to the Chamber, their assessment of the factors influencing pump prices, particularly the exchange rate, has shown stability in recent weeks. They believe this stability is likely to have minimal impact on the prices of petrol, diesel, and Liquefied Petroleum Gas (LPG).
Dr. Patrick Kwaku Ofori, Chief Executive Officer of CBOD, addressed journalists in Accra to dismiss reports speculating that petrol and diesel prices could soar to at least GHS18 per litre by the upcoming 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," Dr. Ofori stated.
He continued, "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.”
Dr. Ofori urged the public and "energy experts" to refrain from making uninformed projections that could cause fear among consumers and potentially impact investments in the sector.
Expressing concern about the influence of such speculation on consumer behavior and pump price volatility, Dr. Ofori announced plans for CBOD to organize training courses for journalists on fuel pricing components and market dynamics. These efforts aim to reduce misinformation surrounding fuel pricing.
“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 emphasized.
In recent weeks, after a period of relative stability, fuel prices in Ghana have seen repeated increases. Analysts attribute this trend to spikes in international prices and the depreciation of the Cedi against the US Dollar.
Currently, petrol and diesel are trading at an average of GHS14.99 and GHS14.80 per litre respectively at the pumps.
Dr. Ofori highlighted that the performance of the Cedi against the Dollar and international market prices are major factors influencing fuel price hikes. 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 sometimes Bulk Distribution Companies (BDCs) incur losses if their projections of the forex market exceed expectations.
Assessing the situation on the international market, Dr. Ofori expressed concern about ongoing tensions in the Middle East. He warned that if the exchanges between Israel, Iran, and Gaza escalate, global fuel prices could be affected.
“We do not want the situation to escalate. Once it escalates, we should be certain that oil prices will go up,” he cautioned.
As Ghana's consumers and businesses monitor fuel prices closely, the reassurance from the Ghana Chamber of Bulk Oil Distributors provides some relief amidst the uncertainties. Their efforts to educate journalists and the public on fuel pricing dynamics aim to promote transparency and understanding in the industry.
The CBOD's commitment to stability and its proactive measures to address potential challenges demonstrate their dedication to ensuring a fair and informed market for fuel consumers in Ghana.
Moving forward, Dr. Ofori emphasized the importance of monitoring key variables closely to anticipate and manage any potential price fluctuations. He reiterated the Chamber's commitment to working with stakeholders to ensure a stable and predictable fuel market.
As Ghana continues to navigate economic challenges, particularly in the wake of the COVID-19 pandemic, the assurance of stable fuel prices is crucial for businesses and consumers alike. Stable fuel prices contribute to overall economic stability and help mitigate inflationary pressures.
In conclusion, the Ghana Chamber of Bulk Oil Distributors' assurance of stable fuel prices amidst speculation provides a sense of reassurance to consumers and businesses. Their commitment to transparency and education in the sector is commendable, as it helps promote understanding and confidence in the fuel market.
The Chamber's proactive approach in addressing potential challenges, such as forex market fluctuations and geopolitical tensions, demonstrates their readiness to navigate uncertainties and uphold stability. As Ghana's economy continues to recover, stable fuel prices play a vital role in supporting businesses and facilitating economic growth.
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