A few hours after the National Petroleum Authority (NPA) issued a new directive to the Oil Marketing Companies (OMCs) to halt their discount fuel pricing, industry watchers are raising concerns over the move amid the ongoing Middle East crisis.
A leading voice in this concern is Natural Resource Governance expert, Dr. Steve Manteaw, who is calling on the government to suspend the recent directive halting selective fuel discounts.
He fears that the move could worsen the impact of rising global oil prices on Ghanaian consumers due to the ongoing crisis.
Background to the Directive
The NPA’s directive followed a petition over the selective fuel discounts offered by some OMCs at particular stations. Critics argued the practice conflicted with Ghana’s Unified Petroleum Pricing Policy, which is meant to ensure fairness and price consistency nationwide.
In response, the regulator moved to enforce uniform pump prices across all outlets within the same OMC network.
While the directive aims to promote fairness, Dr. Manteaw believes timing is critical.
Why the Call for Suspension
According to Dr. Manteaw, the ongoing tensions in the Middle East, a region that influences global oil supply, pose a serious risk to crude oil prices.
History shows that when conflict disrupts supply routes or creates uncertainty, global oil prices spike. When oil prices rise, fuel prices at the pump often follow. And when fuel prices increase, transport fares, food costs, and general inflation tend to rise.
This is precisely the moment when flexibility is needed. Dr. Manteaw says the discounts, even if imperfect, provide short-term relief to consumers. Removing them at a time of possible global price shocks could limit competition and reduce the chances of price moderation at the pump.
Call for Tax Relief
Aside from suspending the directive, he is urging the government to consider temporarily suspending or reducing some taxes on petroleum products to cushion consumers if international prices surge.
Fuel in Ghana carries multiple levies and taxes. Even a small adjustment, he notes, could ease pressure on households and businesses if global crude prices climb sharply.
For many drivers, traders, and transport operators, a rise of even 50 pesewas per litre can significantly affect daily income.
“This directive ought to be reconsidered in the interest of containing the potential effects of the ongoing Middle East conflict on consumers. In fact, the government should be considering the suspension of some taxes on petroleum products to stem potential price hikes,” Dr. Steve Manteaw urged the government.
Balancing Fairness and Affordability
Dr. Manteaw is not dismissing the principle behind uniform pricing. However, he believes economic conditions should shape regulatory decisions.
As the Middle East situation unfolds, the debate now shifts from pricing uniformity to affordability and economic resilience.
