Audio By Carbonatix
Fresh tensions between the United States and Iran, following the collapse of renewed peace efforts, are once again shaking global oil markets and exposing Ghana’s fuel industry to sharp price swings.
Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, says the renewed uncertainty is making it increasingly difficult for fuel dealers to protect their revenues, especially when prices fall suddenly.
Speaking on JoyNews’ PM Express Business Edition on Thursday, Dr Oppong said the latest geopolitical developments were not surprising given the unpredictability that has dominated the global oil market in recent months.
“Personally, I wasn’t shocked to hear the turnaround of the peace deal because we’ve lived within this uncertainty for the past months, and only Trump knows when he’s going to ceasefire, or probably only Iran knows when they’re actually going to ceasefire.”
He said the constant uncertainty has translated into volatile crude oil prices, creating significant operational challenges for Oil Marketing Companies (OMCs) and Bulk Distribution Companies (BDCs).
According to him, rising prices are generally easier for fuel dealers to manage. The real danger comes when prices fall sharply within a short period.
“As far as revenue is concerned, it is a bit easier when prices are moving up, but when prices are going down, it is a bit deadly, not only to the OMCs but to the BDCs as well.”
Dr Oppong explained that fuel dealers often purchase products at higher prices, only to see market prices decline before they can sell their stock.
He said such movements quickly erode margins and leave operators carrying inventory that must be sold at lower prices.
“Imagine going to buy at a higher price within a window, and you wake up, and the next window price has gone down. You’ve knocked your price.”
While hedging is often cited as a way to manage price risks in commodity markets, Dr Oppong said that option is far less practical for Ghana’s retail fuel business.
“We can talk about hedging and all that stuff. I mean, with the retail business, it’s a bit difficult to hedge.”
His comments come as global energy markets remain on edge over renewed hostilities involving the United States and Iran after diplomatic efforts failed to produce a lasting breakthrough.
The uncertainty has kept traders watching closely for further disruptions that could trigger another round of sharp movements in crude oil prices.
For Ghana’s downstream petroleum sector, those swings continue to create uncertainty about fuel pricing, inventory values, and business sustainability.
Dr Oppong’s warning underscores the growing pressure on fuel dealers, who must navigate rapidly changing international oil prices while managing thin margins in the domestic market.
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