Oil Marketing Companies (OMCs) are projecting some marginal reduction in fuel prices from September 16, 2024 if the Ghana cedi remains stable against the US dollar.

The Chief Executive of Association of Oil Marketing Companies, Dr. Riverson Oppong disclosed this on PM EXPRESS BUSINESS EDITION with host George Wiafe on September 5, 2024.

“All the variables that influence prices of petroleum products have been fairly stable over the past week and if that is sustained going forward, then there should be a reduction in prices at the pumps”, he explained.

Mr. Oppong however pointed out that the cedi’s performance will be “major push factor when it comes to reviewing prices from September 16, 2024 by the various oil marketing companies”.

He refuted criticisms that OMCs do not quickly adjust prices when the variables indicate a price reduction.

“There is always a reason, why the OMCs delay in reviewing prices at the pumps, and that has nothing to do with the arguments that they want to shortchange consumers”, he defended.

Price Movements

Some OMCs earlier this month started reviewing prices at the pumps mainly influenced by the cedi’s stability and a decrease in prices of crude oil on the international market.

Dr. Oppong rejected the arguments that some of the OMCs collude to fix prices of petroleum products.

 “The Market is very competitive and it might be difficult for any operator to collude with another player”.

“OMCs have little influence on the prices, this is because we take the price from Bulk Oil Distributors based on price. We factor the various levies and taxes and then our margins”.

“Our cost inputs are very high and margins are small and most of our members are struggling to break even and that is a fact”, he added.

Service quality issues

Dr. Oppong revealed that the association is working to deal with complains of service quality issues that have come up in recent times from some consumers.

“Our sector can be described as the most regulated in the industry. We are regulated by the National Petroleum Authority, and Ghana Standards Authority. You shouldn’t see some of these product quality issues coming up that often”.

He revealed that the association is embarking on its own initiative, to ensure that members comply with the highest standards in storing products at the various service stations.

This, he believes could go a long way to deal with the challenge and reduce the complaints from consumers.

“Looking at the progress that we have made when it comes to developing the sector, we should not be having these kinds of challenges. That they are committed to doing everything to ensure that help restore confidence in the industry when it comes quality of products sold”.

He was also of the view that we must work hard to compensate affected consumers.