Port Disruptions Could Cause Rise in Fuel Prices in July Pricing Window Despite Stable Cedi – CBOD

Ghanaian consumers could face a hike in petroleum product prices in the first pricing window of July, following global crude oil price increases driven by the Israel-Iran conflict.

In their outlook analysis for the first pricing window of July, CBOD noted that despite recent stability in the Ghana cedi against the US dollar, the escalating international market dynamics and persistent inefficiencies in laycan allocations could override local currency gains.

According to the Chamber of Bulk Oil Distributors (CBOD), disruptions in laycan scheduling, which is crucial for the importation and distribution of petroleum products, continue to undermine pricing stability.

“The current Israel-Iran war and the resultant spike in crude prices in the global market is expected to impact pump prices in Ghana in the coming pricing window, given that the cedi has stabilized against the US dollar in recent weeks. Moreover, the continual abrupt laycan disruptions continue to impact of the sustainability of the sector,” CBOD said their review.

The Chamber estimates that these irregularities add an unnecessary cost burden of between GHp47 and GHp60 per litre for consumers.

CBOD maintains that a transparent and streamlined laycan management system can bring some relief to Ghanaian since fuel prices could be reduced by as much as GHp60 per litre.

In a country where transport costs directly affect the prices of goods and services, such savings could significantly ease the cost-of-living pressure for millions.

“The CBOD has consistently indicated the impact of the laycan disruption on importers and consumers, estimating a cost burden of between GHp 47 to GHp60 per liter. This implies that with a transparent and efficient laycan allocation and management system, consumers will be relieved of about GHp60 on every liter of petroleum products they consume,” CBOD added.

While the cedi’s recent appreciation offers a rare window of opportunity for price moderation, the CBOD warns that failure to address systemic challenges like laycan disruptions could erode any potential gains. They call on regulators and policymakers to urgently institute reforms in laycan allocation to ensure fairness, efficiency, and consumer relief.

CBOD’s projection of a possible increase in fuel prices this month serves as both a warning and a roadmap, underscoring the urgent need for internal sector discipline to shield Ghanaians from avoidable price shocks.

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