Some OMCs increase fuel prices at pumps, as crude oil price remains high

Some Oil Marketing Companies (OMCs) have started increasing prices of fuel at the pump stations.

Total has taken the lead, selling a liter of diesel and petrol at ¢6.90 respectively.

The upward adjustment is as a result of rising crude oil prices on the international market. The price of crude oil is presently going for about $82 on the world market.

It could have even been higher than the 1.47% increment if the Price Stabilization and Recovery Levy (PSRL) had not been suspended on fuel prices for the next two months. This has resulted in a litre of diesel and petrol going down by 14 pesewas and 16 pesewas per litre respectively.

However, some OMCs, largely the smaller ones have also cut their prices slightly.

But the increment by Total and few others is contrary to the assertion by the Chief Executive of the Association of Oil Marketing Companies (AOMCs), Kwaku Agyemang-Duah.

Mr. Agyemang-Duah had told Joy Business that the implementation of the PSRL will trigger a slight reduction in fuel prices in the current price window.

We have been instructed or directed by the NPA to remove the stabilisation levy, from 1st November so it will dampen it [fuel prices] a bit. So it will be a bit lower than the previous window. By Monday, there will be a reduction…some reduction because of the dampening effect of the stabilisation”.

“Even though it [crude oil price] is going up, there will be a relative reduction. There is a dampening effect on it [fuel] which will let us feel a little bit of relief.  Basically, petrol, diesel and LPG (Liquefied Petroleum Gas) prices will go down”, he stated.

But the Chief Executive of the Chamber of Petroleum Consumers, Duncan Amoah, disagreed, saying, the top OMCs – Total, Shell and GOIL – were rather going to adjust fuel prices upward.  

“What is more likely to happen tomorrow [1st November, 2021] and the days beyond is rather stability or rather an increase and not a reduction…that I can confirm. It is unlikely they [OMCs] will be able to go down.”

“A lot of the BDCs (Bulk Oil Distribution Companies) you speak to currently will indicate an upward adjustment of more than 20 pesewas. So the source you get the product from, if the importer is actually paying an increment and we are talking of a reduction of 20 pesewas, mind you some OMCs have already given out the 16 pesewas in anticipation of Parliament passing the removal of the PSRL.”

Meanwhile, this latest increase in fuel prices, could push the unionised transport operators to kick start the process of increasing fares.