Audio By Carbonatix
GOIL is studying the impact of crude oil prices hitting $100 a barrel before deciding whether to adjust fuel prices at its pumps.
Chief Executive Officer Edward Bawa says the company will announce its position by September 16 as it weighs different scenarios and strategies to protect customers from the impact of rising global oil prices.
Mr Bawa said that higher crude prices do not automatically translate into higher prices at GOIL pumps.
“We will get there. We’re still looking, or we’re still studying the various scenarios, still looking at what we should do, but what I can assure Ghanaians is that we will always want to be on their side,” he said.
Speaking on Joy News’ PM Express Business Edition on Thursday, he said GOIL must cover its costs while also considering the impact of price increases on consumers.
“That in as much as we need to at least cover our costs, we need to ensure that our actions also go to ameliorate, what do you call it, the effects of increases of prices for them,” he said.
Mr Bawa said the company has not yet determined what the figures will look like.
“I can tell you that we will look at the figures. We do not know what the figures will look like. Prices going up does not necessarily mean that at the pumps it will go up. It again depends on what strategy you are using,” he said.
He said GOIL would seek to limit the impact of the global price surge on consumers.
“So GOIL will definitely find a way of trying to tame the market, and in doing that, by the 16th of September, you will know,” he said.
The potential fuel price decision comes amid pressure from commercial transport operators, with the Ghana Private Road Transport Union pushing for a 30% increase in transport fares.
Mr Bawa said fuel is not the only factor that should determine lorry fares.
He cited exchange rates, spare parts, insurance and other costs as factors that must also be considered.
He said the relative stability of the cedi should also form part of the assessment.
“And so, it is unfair that anytime there’s an increase in fuel prices, you have lorry commercial drivers at to increase,” he said.
Mr Bawa also acknowledged the pressure created by developments in the global oil market.
“Anytime I see this, consistently you see that my phone, this tv is on either CNN or other, just to see what is happening,” he said.
He said the concern extends beyond GOIL because oil marketing companies want to avoid placing excessive pressure on their customers.
“And so, there are things that worry not only me, but I believe that it worries every OMC that interacts, because as a provider of petroleum products to customers, you want to ensure that your customers are not overly burdened because of the pricing,” he said.
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