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Chief Executive of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, has welcomed the government's GH¢2 per litre diesel subsidy.

He described it as a timely intervention to cushion consumers and operators as volatility in the global oil market continues to drive uncertainty in fuel prices.

Speaking on Joy FM's Top Story on Monday, August 3, Dr Oppong said the subsidy comes at a critical time for Ghana's downstream petroleum sector, which, like markets around the world, is grappling with sharp swings in international crude oil prices.

"The two cedis relief has come. It is indeed here to cushion consumers and operators within the sector," he said.

He explained that consumers naturally expect affordable fuel prices but noted that the petroleum industry has little control over the international factors influencing local pump prices.

"As consumers, just like myself and you, we always want to have very, very affordable fuel to be able to purchase and use," he said.

According to Dr Oppong, the entire petroleum value chain—from traders and Bulk Distribution Companies (BDCs) to Oil Marketing Companies (OMCs)—is feeling the effects of the unstable global market.

He cited recent movements in crude oil prices to illustrate the unpredictability of the global market.

"As we speak today, it's true. Crude oil is back in the 80-dollar range, having moved from about 100 dollars to around 80 dollars within a week," he said.

Dr Oppong stressed that the challenges facing Ghana's petroleum sector are not unique, describing them as part of a broader global phenomenon affecting oil-producing and oil-importing countries alike.

"We are not in normal times as an industry, and it's a global effect. It's not only Africa or even Ghana per se. Everywhere we are discussing it on global platforms—upstream, midstream and downstream."

He added that the volatility has placed significant pressure on businesses operating within the sector.

"The industry is suffering, the BDCs are crying, traders are not happy, and therefore we as consumers would not necessarily be laughing at the moment," he remarked.

While welcoming the government's intervention, Dr Oppong suggested that broader geopolitical developments would continue to influence international crude oil prices and, ultimately, fuel prices in Ghana.

He said the subsidy should therefore be viewed as an important relief measure for consumers and businesses rather than a permanent solution to fluctuations in global energy markets.

However, Dr Oppong believes extending relief to petrol users would have provided broader support to households and private motorists also grappling with rising fuel costs. "I would have been happy to see petrol as well being altered," he stated.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.