The Chamber of Oil Marketing Companies (COMAC) has issued a formal clarification regarding recent fuel price adjustments under the June 1st pricing window, following public concerns over what has been described as “inadequate” reductions at the pumps.

In a press release signed by its CEO and Industry Coordinator, Dr. Riverson Oppong, the Chamber responded to criticisms by explaining the nuanced and multifactorial nature of fuel pricing in Ghana’s deregulated downstream petroleum market.

According to Dr. Oppong, while the recent appreciation of the Ghanaian cedi has created public expectations for proportional fuel price reductions, these expectations fail to account for the complex pricing structure regulated by the National Petroleum Authority (NPA) and influenced by several interdependent variables.

“The assertion that ex-pump prices should automatically decrease in direct proportion to the appreciation of the local currency is a misconception.
“It overlooks key operational realities, including inventory turnover, global FOB pricing, and competitive margins.”
Dr. Riverson Oppong, CEO of COMAC and Industry Coordinator

Ghana’s fuel pricing is governed by a three-component formula that includes:

Ex-refinery prices, determined by Bulk Import, Distribution and Export Companies (BIDECs), factoring in global Free-On-Board (FOB) crude prices, supplier premiums, and shipping costs;

Statutory taxes and levies, such as the Energy Sector Recovery Levy and Price Stabilization and Recovery Levy; and

Operational margins, required by Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) for cost recovery and sustainability.

While the appreciation of the cedi does ease the foreign exchange burden on importers, COMAC emphasized that the FX gain is only one of many determinants of pump price.

The Chamber further explained that many OMCs are still selling products procured at older, higher ex-refinery prices—before the recent cedi appreciation—due to slow inventory turnover.

“Because of intense competition and market saturation, many retail outlets are operating below optimal throughput levels. Inventory from the last pricing window may take up to a month to clear.”
Dr. Riverson Oppong, CEO of COMAC and Industry Coordinator

Pricing Challenges and Narrow Margins

Dr. Oppong also highlighted that most OMCs and LPGMCs are operating within narrow and declining margins.

The implication is that while price cuts are being implemented, many marketers are doing so at the expense of full cost recovery. Yet they continue to invest in service upgrades and retail infrastructure to enhance customer experience.

“Despite margin constraints, our members remain committed to delivering value through enhanced service delivery, even when it requires short-term sacrifices.”
Dr. Riverson Oppong, CEO of COMAC and Industry Coordinator

The Chamber acknowledged that fuel price drops have already been effected by some companies in response to the June pricing window.

Notably, state-owned GOIL reduced prices to GHS 12.52 per litre for petrol and GHS 12.98 per litre for diesel, down from GHS 13.27 and GHS 13.87 respectively in the previous window. Star Oil is offering petrol at GHS 11.77 and diesel at GHS 12.49.

COMAC anticipated that more companies will follow suit as inventory costs adjust in real time, supported by continued cedi stability and easing global oil prices.

COMAC reassured the public that all OMCs and LPGMCs remain fully compliant with NPA guidelines.

These include mandatory price display at retail outlets and adherence to the pricing floor and ceiling structures. The NPA, according to the Chamber, continues to enforce pricing regulations through robust monitoring.

“The NPA’s oversight ensures transparency and accountability. Any deviations are addressed swiftly.”
Dr. Riverson Oppong, CEO of COMAC and Industry Coordinator

Amid growing public scrutiny, COMAC urged stakeholders—including civil society organizations and consumer advocacy groups—to ground their commentary in a solid understanding of how the deregulated pricing regime functions.

The Chamber also reiterated its support for government policies that protect consumer welfare while allowing for sustainable private sector participation.

“We welcome informed public discourse. But we caution against oversimplified expectations and advocate for a nuanced perspective that reflects real market dynamics.”
Dr. Riverson Oppong, CEO of COMAC and Industry Coordinator

COMAC affirmed its commitment to fair pricing, operational transparency, and consumer protection. It emphasized the importance of trusting Ghana’s regulatory framework, which has shown resilience in balancing market forces with public interest.