Petrol price should have gone lower than what we’re experiencing at the pumps-Energy expert

Energy expert Mr. Ben Nsiah has raised concerns about fuel pricing in Ghana. He is the Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE).

During an interview on Class 91.3 FM, he discussed Oil Marketing Companies (OMCs). He suggested that OMCs are not passing on benefits from falling international fuel prices to consumers.

Mr. Nsiah referenced an analysis by the Chamber of Petroleum Consumers (COPEC). This analysis projected an 8% drop in diesel prices and a 4% drop in petrol prices. However, OMCs only reduced prices by 2%. This has raised questions about pricing transparency.

“Based on COPEC’s data, pump prices should have dropped more,” Mr. Nsiah said. He noted that OMCs are keeping part of the margin. They attribute limited reductions to Bulk Oil Distributing Companies (BDCs).

The energy expert pointed out that BDCs lack transparency, making accountability difficult. “If you ask OMCs about minimal reductions, they blame BDCs,” he explained. “But BDCs don’t publish their pricing structures, leaving consumers in the dark.”

Mr. Nsiah urged the National Petroleum Authority (NPA) to intervene. He wants BDCs to publicly disclose their pricing regimes like OMCs do. This would improve accountability and prevent unfair pricing practices.

“With transparent pricing mechanisms, we can identify who profits unfairly,” he emphasized. This change would protect ordinary Ghanaians at the pump.

He believes consumers may see further price reductions in June with the next pricing window approaching.