Reports of daily fuel price changes are inaccurate – CBOD

The Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD), Dr. Patrick Kwaku Ofori, has dismissed reports suggesting that Ghana is preparing to introduce daily fuel price adjustments, assuring consumers that the country's existing bi-weekly petroleum pricing system remains unchanged.

His clarification follows widespread speculation that increasing volatility in global oil markets could force Ghana to abandon its current pricing regime in favour of daily price reviews at fuel stations.

Speaking on the Citi Breakfast Show on Monday, August 3, Dr. Ofori stressed that there has been no amendment to the regulatory framework governing fuel pricing in Ghana.

According to him, fuel prices continue to be reviewed within the established bi-weekly pricing window prescribed under the country's petroleum pricing system.

He emphasised that Bulk Distribution Companies (BDCs) do not determine the national pricing regime and therefore cannot independently introduce daily fuel price adjustments.

"It is not absolutely correct because of the pricing window that we have. It is not the BDCs that determine how the nation should adopt what pricing window," he explained.

Dr. Ofori clarified that the confusion stems from commercial arrangements between Bulk Distribution Companies and Oil Marketing Companies (OMCs), which may adopt flexible pricing strategies to manage risks associated with volatile international oil prices.

He explained that some fuel suppliers choose to apply flexible pricing to portions of their transactions during a pricing cycle in order to reduce exposure to fluctuations in global petroleum markets.

"Some decide that because of the increasing volatility, they don't want their exposure to be so huge. So, maybe for 20 or 30 percent of the volumes they are going to trade within a pricing window, they choose to price based on the agreed two-week window," he said.

According to him, these arrangements are purely commercial decisions between industry players and do not alter the pricing system experienced by consumers at fuel stations.

The CBOD Chief Executive stressed that Ghana's official fuel pricing mechanism remains firmly anchored on the existing bi-weekly review framework.

He noted that while companies may adopt internal pricing strategies to manage market risks, those decisions should not be interpreted as evidence that the country is transitioning to daily fuel price adjustments.

Dr. Ofori said the industry's commercial flexibility is intended to protect businesses from sharp swings in international oil prices while ensuring stability within Ghana's downstream petroleum sector.

With global crude oil prices continuing to fluctuate due to geopolitical and economic developments, petroleum companies have increasingly adopted risk management strategies to minimise financial exposure.

However, Dr. Ofori maintained that these internal commercial practices have no impact on the national regulatory framework governing fuel prices.

His remarks are expected to reassure motorists, businesses and consumers who had expressed concern over reports suggesting that fuel prices could soon change on a daily basis.