The Chamber of Oil Marketing Companies (COMAC) has defended the modest fuel price reductions recorded in the first pricing window of June, insisting that pump prices cannot and should not be pegged solely to the performance of the Ghanaian cedi.
In a detailed statement issued in response to growing public criticism particularly from the Chamber of Petroleum Consumers (COPEC), the Chamber clarified that ex-pump prices are determined by a complex blend of market variables that go far beyond currency appreciation.
“While the cedi’s recent appreciation is significant, it represents just one element in a broader pricing framework,” the Chamber stated.
“The assumption that pump prices must fall directly and immediately in proportion to gains in the local currency disregards key operational, regulatory, and supply-side dynamics.”
COMAC explained that Ghana’s deregulated fuel pricing regime takes into account global crude and ex-refinery prices, freight charges, statutory taxes and levies and operational margins.
Moreover, current prices reflect inventories acquired during the previous pricing window when forex rates were less favorable and international oil prices were higher.
With many Oil Marketing Companies (OMCs) and LPG marketers turning over fuel stocks within a monthly cycle, price adjustments are typically delayed relative to macroeconomic changes.
The Chamber also highlighted that most industry players are operating within squeezed margins, often sacrificing profitability to invest in service infrastructure and customer satisfaction.
“Inventory turnover in Ghana’s saturated fuel retail market can take up to a month. This naturally delays the pass-through of reduced input costs to the pumps,” COMAC noted.
“OMCs continue to prioritize value delivery and infrastructure enhancement, even when margins do not permit full cost recovery.”
Amid criticism from COPEC, which described the price cuts as inadequate, COMAC reiterated its commitment to full compliance with National Petroleum Authority (NPA) regulations.
It underscored that all retail stations are subject to stringent pricing and transparency checks, with deviations addressed through regulatory enforcement.
The Chamber assured the public that further price drops may be observed in the coming weeks as lower-cost fuel consignments arrive, urging consumers to appreciate the multi-layered nature of fuel pricing in a deregulated economy.