The Association of Oil Marketing Companies (AOMC) has issued a warning of a significant surge in the price of petroleum products by the last quarter of 2023.
The impending implementation of the International Monetary Fund (IMF) conditionality, which involves reducing dollar support to Bulk Oil Distribution Companies (BDCs) by October 2023, could potentially force prices of petroleum products to rise.
Chief Executive of AOMC, Kweku Agyemang-Duah, disclosed in an interview on PM Express Business Edition in Joy News.
He explained that the government’s efforts to fulfil the IMF conditionalities in order to access the next tranche of funds under the program would likely lead to an increase in fuel costs.
He emphasized that while there might be delays, history has shown that such price hikes are inevitable, stating, “It had happened in the past before, yet it could delay, but it will surely happen.”
Speaking on the possibility of the government making adjustments to the taxes despite the current circumstances, Mr Agyemang-Duah expressed doubt that the government would review taxes on petroleum products to beat down prices.
He stated, “We don’t think that pushing for a review on some taxes on petroleum products is going to yield any results for now, looking at the fact that Ghana is under an IMF program which is pushing the government to improve revenue.”
Regarding the Gold For Oil Programme, he argued it is time to reconsider the program due to recent developments in the global market.
The program, he said, has become unnecessary but clarified that the Oil Marketing Companies (OMCs) that have participated in the Gold For Oil Programme are still involved and have not withdrawn from it.