The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has urged the government to take a more proactive approach to fuel pricing to ensure stability and prevent excessive increases that burden consumers.
His call comes in response to three consecutive fuel price hikes since the beginning of the year, followed by a slight reduction in the second pricing window of February.
The latest decrease in fuel prices has been attributed to factors such as a drop in global crude oil prices, yet Amoah warns that without effective government intervention, Ghana’s fuel market will remain vulnerable to sharp fluctuations.
Given the direct impact of fuel prices on transportation fares, inflation, and overall economic activity, he believes that measures must be put in place to mitigate abrupt increases in the future.
Amoah emphasized that the cost of fuel significantly affects the broader economy, from transportation to food prices and general consumer goods.
“If anybody will be able to function within the economic space, fuel will play a very vital role. So, for us, whatever importance a government attaches to fuel, it attaches to its own economic indexes.
“We think this government would have to focus a lot on fuel pricing because the moment that goes up, transport operators will definitely demand for their pound of flesh.”
Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC)
He further explained that high fuel prices trigger a chain reaction, causing prices of basic goods such as food to rise.
“The market women will start reducing balls of kenkey. Everything will start getting smaller and smaller simply because prices of fuel have gone higher and higher.
“This is a natural effect on the economy, and I think that the government will need to pay a lot of attention to fuel pricing going forward.”
Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC)
In addition to fuel pricing, Amoah has called for decisive action to curb the depreciation of the Ghanaian cedi. The cedi’s value against major foreign currencies, particularly the US dollar, plays a significant role in fuel pricing.
Since petroleum products are imported, any depreciation of the local currency results in higher costs, often offsetting reductions in global crude oil prices.
“The issue is not just about crude oil prices on the global market.
“If the cedi keeps depreciating, any gains from falling oil prices will be eroded, leaving consumers with little relief at the pumps.”
Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC)
NPA’s Price Floor Initiative
In an effort to maintain market stability, the National Petroleum Authority (NPA) has introduced a new price floor for petroleum products for the second pricing window of February.
The directive, which took effect from February 16 to 28, 2025, mandates that no company should sell fuel below the established threshold. Violators risk potential sanctions from the regulator.
The price floor for petrol and diesel has been set at GHȼ12.56 and GHȼ 13.45 per litre, respectively, while LPG has been fixed at GHS 14.26 per kilogram.
The move aligns with the Petroleum Pricing Guidelines, which seek to prevent unfair price undercutting and ensure stability in the downstream petroleum sector.
Despite the price floor initiative, concerns remain over the broader implications of Ghana’s deregulated fuel pricing policy.
The newly introduced price floors do not factor in critical cost components such as: Premiums charged by International Oil Trading Companies (IOTCs), Operating margins of Bulk Import, Distribution, and Export Companies (BIDECs), and Marketing and dealer margins of OMCs and LPGMCs
These components continue to be determined independently by companies, raising questions about the long-term effectiveness of the price floor initiative.
Industry experts argue that while the price floor helps to prevent market destabilization, it does not directly address the underlying challenges, including currency depreciation and taxation policies that impact fuel costs.
Duncan Amoah and other stakeholders have reiterated the need for the government to implement more sustainable solutions to Ghana’s fuel pricing challenges.
While the recent price reduction is a welcome relief for consumers, experts warn that without strategic government intervention, Ghana’s fuel market will remain susceptible to frequent and unpredictable changes.
The call for government action is expected to intensify in the coming months as stakeholders push for policies that ensure long-term stability in the fuel sector.
READ ALSO: President Mahama Declares Assets
