Ghanaian Oil Marketing Companies are predicting further fuel prices increase if the cedi depreciation continues

The Ghanaian local currency has depreciated more than 8.5 percent this year.
This has affected the prices of goods including fuel.
If nothing is done to arrest the depreciation of the cedi, OMCs have predicted an upward adjustment in prices.

The Oil Marketing Companies (OMCs) have lamented about the impact the depreciation of the cedi is having on their operations.

According to the OMCs, they may be compelled to increase the price of fuel at the pumps if the rate of depreciation continues.

The local currency has depreciated more than 8.5 percent this year, hitting GHS5.54 from GHS4.99 at the beginning of the year in forex bureaus.

Speaking to Accra-based Citi FM, the Chief Executive Officer of the Association of Oil Marketing companies (AOMC), Kwaku Agyeman Duah said the depreciation of the cedi poses serious issues for the downstream sector.

“We import them and anytime we import something, we have that cedi dollar relationship and that is it. Although the price was going up but with the cedi coming in, it makes it worse. But we hope it changes because if it keeps going down like this then there will be trouble.”

This warning is coming after the Institute of Energy Security (IES) earlier predicted that the depreciation of the cedi will be a major cause for the increase in fuel prices at the pumps for the first quarter of March.

Soon after their prediction, fuel prices increased as many OMCs started selling a litre of petrol and diesel above 5 cedis.

Meanwhile, the Chief Executive of Union Oil Charles Obeng Mensah said the OMCs need help from stakeholders in order to grow.

“The industry as a whole is facing crisis. In our type of business, companies were not being given startups so if help can come from ministries and other stakeholders for startups it will be much appreciated,” he said.