Dr. Patrick Kwaku Ofori, Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD), has dismissed reports suggesting that Ghana is set to introduce daily fuel price adjustments, insisting that the country’s current bi-weekly pricing system remains in force.
His comments come amid growing public speculation that heightened volatility in global petroleum markets could prompt a shift from the existing pricing regime to daily adjustments at fuel stations.
Speaking on the Citi Breakfast Show on Monday, August 3, Dr. Ofori clarified that there has been no change to the regulatory framework governing fuel pricing, stressing that prices continue to be reviewed within the bi-weekly pricing window prescribed under the country’s petroleum pricing system.
He explained that Bulk Distribution Companies (BDCs) do not determine the national pricing window, as it is established by the sector’s regulatory framework.
“It is not absolutely correct because of the pricing window that we have. It is not the BDCs that determine how the nation should adopt what pricing window.
“What happens is this: as we deal with the oil marketing companies, it is the same way that our members, who are also off taking from either local refineries or international oil trading companies, adopt some elements of flexibility in the pricing regime they use to govern their commercial transactions.
“Some decide that because of the increasing volatility, they don’t want their exposure to be so huge. So, maybe for 20 or 30 percent of the volumes they are going to trade within a pricing window, they choose to price based on the agreed two-week window.”
Dr. Ofori explained that while some commercial transactions between fuel suppliers may involve flexible pricing arrangements to manage market risks, these arrangements do not alter the national fuel pricing mechanism.
He stressed that such decisions are purely commercial and are intended to limit exposure to fluctuations in international petroleum prices, rather than signal a shift to daily fuel price adjustments for consumers.
SOURCE: citifm.com
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