The Association of Oil Marketing Companies (AOMC) has blamed the recent hikes in fuel prices in Ghana on the surge in the global oil prices on the international market.

The Board Chairman of the Association of Oil Marketing Companies, Henry Akwaboah, commenting on the recent 3 percent increase in fuel price at the pump, stated that fuel prices depends on the movement of prices of the commodity on the world market and the exchange rate “between the US Dollar and the Ghana cedi. As you know, world market prices have been going up. It’s been going up for the past month or so, but oil marketing companies have maintained their prices at the level we have been all this while.”

“We have reached a point where it is no longer feasible for us to continue to absorb these costs, so we need to really recover our loss fully otherwise we would be doing business for nothing.”
Henry Akwaboah

Meanwhile, he appealed to the general public to bear with them in these difficult times. He also urged the public to continue absorbing the rising cost of petroleum products.

“We are appealing again to the consuming public that as much as possible we try to contain all the costs associated with getting the petroleum products to them. But these are difficult times, and we wished that we could continue to accommodate the rising cost of petroleum products in the oil market. But at this stage, it is very difficult for us, so they need to bear with us, and we can assure them that they will get value for money when they go to the pumps.”
Henry Akwaboah

It will be recalled that, following the implementation of some new taxes introduced in the 2021 budget statement, fuel prices saw an increase from GHS5.45 to GHS6.23 between the periods of 1st of May 2021 to June 20, 2021, with the recent increment coming two days ago.

The increment was met with a lot of public uproar with many lamenting its impact especially amid the economic hardship as a result of the Covid-19 pandemic.

Notwithstanding, the hike in fuel prices subsequently led to a 13 percent increase in transport fares. Putting more burden on the general public.

Global Oil Price Outlook

The global oil prices has been volatile since the first case of the COVID- 19 was recorded. The global pandemic forced several countries into total lock which slowed down the demand for oil in the global market.

Furthermore, as many countries started easing restrictions, prices began to pick up. Over the last thirty days, West Texas Intermediate (WTI) has risen roughly $7.50 per barrel, from just over $66. Brent crude, on the other hand, has risen roughly $6.50 from the $68.30 recorded a month ago. The last time WTI spot prices were this high was back in October of 2018.

Meanwhile, oil prices on the world market today June 22, 2021 is currently selling at 73 dollars per a barrel.

However, analysts say global oil demand is expected to exceed supplies in the second half of the year despite a gradual easing of supply cuts by OPEC+ producers.

Meanwhile, other analysts also said that a slowdown in talks between Iran and global powers in reviving a 2015 nuclear deal and a drop in U.S. rig count also supported oil prices.