The Chamber of Oil Marketing Companies (COMAC) has refuted claims that its members are not reducing fuel prices as much as it should in line with the deregulated pricing framework implemented by the National Petroleum Authority (NPA).
The chamber in a press statement explained that it is erroneous to base adjustment in fuel prices on only the performance of the cedi to the dollar.
“The assertion that ex-pump prices should automatically decrease in direct proportion to the appreciation of the local currency, is a misconception that overlooks key operational realities”, the statement said.
It explained that Ghana operates a deregulated pricing framework under the oversight of the NPA, guided by a structured Petroleum Pricing Formula.
“This formula for the determination of the ex-pump price encompasses three components”, it said.
According to the statement the factors that influence fuel prices include ex-refinery prices set by Bulk Import, Distribution and Export Companies (BIDECs), influenced by global Free-On-Board (FOB) price, supplier premiums, and freight considerations.
It added that prices at the pumps is further influenced by statutory taxes and levies, and operational margins required to maintain full cost recovery.
“While recent appreciation of the Cedi is a relevant development, it represents only one component influencing final ex-pump prices”, the chamber argued.
The chamber argued that Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs) operate within increasingly narrow and declining margins, often sacrificing full cost recovery.
This, it said is done in pursuit of delivering an enhanced customer experience through upgraded retail infrastructure, improved service delivery, and ultimately, greater value for their cherished consumers.
“Despite these complexities, OMCS/LPGMCs remain fully compliant with the NPA’s pricing and transparency guidelines. This includes public display of prices at all retail stations, and strict adherence to prescribed pricing regulations and pricing window floor price. The NPA’s robust monitoring mechanisms continue to affirm widespread industry compliance, with any deviations promptly addressed through regulatory action”.
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