AOMC CEO Predicts Significant Reduction in Petroleum Prices in Coming Weeks

Dr. Riverson Oppong, the Chief Executive Officer of the Association of Oil Marketing Companies (AOMC), has announced that consumers can expect a significant drop in petroleum prices at the pumps in the coming weeks.

He attributed this forecast to improved supply of petroleum products and the recent stability of the Ghanaian cedi against the US dollar.

Dr. Oppong explained that recent fuel shortages had impacted pricing during the second pricing window. However, with the supply situation improving, he assured that these positive developments would lead to lower prices.

“The fuel shortage that affected the market two weeks ago had an impact on pricing,” he noted. “Now that the situation is improving, it is expected to significantly reduce prices at the pumps.”

He also emphasized the role of the cedi’s stability in bringing down prices. “The Ghana Cedi has been fairly stable, and if this continues, we can expect more competitive prices for consumers in the near future,” he said.

Cedi Performance and Its Impact on Fuel Prices

Dr. Oppong highlighted the strong connection between the cedi’s performance and fuel prices, noting that consumers would have seen a significant reduction of 11 to 17 percent in petroleum prices earlier this year had the cedi remained stable.

“According to Platt Price data, petrol prices dropped by 11.39 percent, but the cedi’s depreciation prevented these savings from being fully passed on to consumers,” he explained.

He further pointed out that the cedi’s depreciation by approximately 35.94 percent, as shown by data from commercial banks, underscores the importance of stabilizing the currency due to its direct impact on fuel prices.

Petroleum Reserves and Supply Status

Dr. Oppong reassured consumers that the supply of petroleum products had improved significantly, though there are still some challenges with certain Bulk Oil Storage and Transportation (BOST) Tank Farms across the country. Additionally, he mentioned some difficulties with the Gold for Oil programme, which had affected supply.

However, he noted that some Bulk Oil Distribution companies had taken the initiative to import directly, which he believes will help ensure a steady supply of petroleum products moving forward.

“All of these developments will contribute to preventing any future supply challenges,” he said.