Fuel price adjustment: Cedi appreciation not the only factor – COMAC

The Chamber of Oil Marketing Companies (COMAC) has denied claims about fuel prices. They say their members are reducing prices as required by the National Petroleum Authority (NPA).

In a press statement, COMAC explained that it is wrong to base fuel price adjustments solely on the cedi's performance against the dollar. They stated that ex-pump prices do not automatically decrease with local currency appreciation.

Ghana uses a deregulated pricing framework overseen by the NPA. This framework follows a structured Petroleum Pricing Formula.

According to COMAC, three components influence fuel prices. These include ex-refinery prices set by Bulk Import, Distribution and Export Companies (BIDECs). Global Free-On-Board (FOB) prices, supplier premiums, and freight costs also play a role.

Additionally, pump prices are affected by statutory taxes and operational margins needed for cost recovery. The chamber noted that while the cedi's recent appreciation is important, it is just one factor in determining final ex-pump prices.

COMAC emphasized that Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs) face narrow profit margins. Often, they sacrifice full cost recovery to enhance customer experience through better infrastructure and service delivery.

Despite these challenges, OMCs and LPGMCs comply with NPA’s pricing guidelines. This includes displaying prices at retail stations and following pricing regulations. The NPA monitors compliance closely and addresses any deviations promptly through regulatory action.