Fuel Price Hike: OMCs Have Been Magnanimous with Consumers, COPEC Says 3% Hike Not as Harsh as Expected

In a rare twist in Ghana’s fuel pricing, oil marketing companies (OMCs) have been described as “magnanimous” for the latest price hike.

The Chamber of Petroleum Consumers (COPEC) says the OMCs have done rather well in holding back on what could have been a sharper upward adjustment in pump prices.

Executive Secretary of COPEC, Duncan Amoah, says while the Ghana cedi has depreciated significantly, losing close to 8% against the US dollar in the past weeks, the fuel price increases at the pumps have been surprisingly modest.

COPEC says based on the cedi’s movement, it was projecting petrol to go up by about 4%, diesel by 7%, and LPG by 7%. But interestingly, what consumers have recorded so far is only about 3% on average, which, he says, is very welcoming.

Adding to the magnanimity of the OMCs, only few companies have adjusted their prices upwards with many others yet to increase their prices at the pumps.

Duncan Amoah, in an interview monitored by The High Street Journal added, that it even took some considerable timeframe before the OMCs decided to adjust their prices despite the persistent depreciation of the cedi.

“They’ve given us a week at the old pricing levels, which is, for me, something very welcoming because the cedi’s movement, according to the past fortnight computation, was only suggesting an upward adjustment. But clearly, most of the oil marketing companies have kept their prices at the old levels. They have not gone up. I was not surprised to see Goil this morning adjust by some 3% on the current market price,” Duncan Amoah remarked.

He added, “I’ve also seen a few other oil marketing companies come up with new prices. Surprisingly, the adjustments that we are even witnessing now do not go any higher than we had anticipated. Originally, we were looking at petrol doing about 4%, diesel some 7%, and LPG 7%. What we have recorded so far is about 3% average. That, for us, is a lot welcoming. I think that the oil marketing companies on this occasion have been magnanimous to Ghanaians.”

He further cautioned consumers who have not bought fuel to do so in a swift manner, as the other OMCs will soon join their colleagues to increase their prices.

“I will not be surprised that before the close of the day today, the other oil marketing companies follow suit. If anybody hasn’t bought yet, we will be encouraging. Try to get some fuel now before you get home, because it will not last for the next week,” the Executive Secretary of COPEC cautioned.

Fuel price reviews are usually a sore point for motorists and transport operators. With global crude price volatility and persistent cedi weakness, consumers often brace for steep hikes whenever the adjustment window comes around. But this time, Amoah says OMCs appear to have softened the blow.

For consumers, this price increment at the pump may be a small consolation that the impact could have been steeper, thanks to the “kindness” of the OMCs.

But one thing is constant: the talk of a possible price hike in transport fares is rearing it ugly head. As to whether this increment will warrant a transport fare hike, the various stakeholders will decide as they open talks with the relevant state institutions.

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