In Ghana, government asks two refineries to maintain fuel prices — MyJoyOnline

In Ghana, the government asked Tema Oil Refinery (TOR) and Sentuo Oil Refinery to maintain current ex-refinery fuel prices for companies engaged in the sale of petroleum products. As a result, retail prices at filling stations may, according to preliminary estimates, remain unchanged for at least the next two weeks, MyJoyOnline reports.

Prices for suppliers

The decision concerns supplies for Oil Marketing Companies — companies that sell petroleum products. This step also complements the existing state subsidy of 2 Ghanaian cedis for diesel fuel.

Riverson Oppong, chief executive officer of the Chamber of Oil Marketing Companies (COMAC), said that maintaining prices at refinery level could prevent an immediate increase in fuel costs at filling stations.

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Exchange rate and costs

According to Oppong, one of the key factors in setting prices at filling stations is the supplier reference exchange rate, or SREF. He noted that if this indicator does not change, prices at filling stations should generally also remain at their previous level.

Oppong added that fuel pricing in Ghana is based on a model that takes industry costs into account. Taxes, levies and other costs are included in the price, while company margins are determined separately. Industry representatives still have to assess the new directive and its impact on the price-setting chain. According to the source's assessment, government intervention may temporarily delay the impact of higher costs on consumers.