By Adnan Adams Mohammed
Energy policy watchdogs are pressing Ghana’s National Petroleum Authority (NPA) to clamp down hard on oil distributors accused of illegally shifting fuel prices in the middle of active pricing cycles.
The demand follows reports that several Oil Marketing Companies (OMCs) and Bulk Distribution Companies (BDCs) have begun adjusting wholesale and retail costs early to capitalize on global oil spikes, bypassing regulatory rules.
The Centre for Environmental Management and Sustainable Energy (CEMSE) has voiced strong opposition to these practices, calling on regulators to strictly enforce current guidelines. Executive Director of CEMSE, Benjamin Nsiah, emphasized that market players are legally required to stick to the pricing structures submitted and approved at the start of every bi-weekly window.
”If any BDC varies their prices upward because of recent price increment on the international market, that particular BDC is acting contrary to the price regulation and that is illegal,” Nsiah stated. “I think that the NPA must enforce its regulation to the letter to ensure that none of the BDCs engage themselves in these malpractices.”
The pricing controversy coincides with mounting volatility in global markets, where Brent crude recently touched the $100-per-barrel mark amid escalating conflict in the Middle East. Despite these international pressures, advocacy groups maintain that local distributors cannot use overseas trends to justify mid-cycle price hikes before an official window closes.
Nsiah warned that retail outlets altering prices mid-window are operating outside the law and taking unfair advantage of consumers.
”If an OMC also decides to respond to what is happening on international market and adjusts its ex-pump price contrary to what has been published, what has been submitted to NPA, that particular OMC is also acting illegal,” Nsiah cautioned.
”Every window has its laid down petroleum price indicator. I think that we must have full compliance with this laid down regulation and not act contrary to it,” he added.
While energy analysts expect the rise in global crude to eventually push up local transport and fuel costs, any legitimate adjustments should only take effect when the next pricing window opens. All eyes are now on the NPA to see if punitive measures will be taken against non-compliant companies to restore order to the market.
