For what is generally known, fuel prices in Ghana typically change at the beginning of each pricing window and remain largely unchanged until the next review period.
But this week, an elephant in the room, rising global oil prices and a weaker cedi, has disrupted that familiar pattern.
Some Oil Marketing Companies (OMCs) have increased pump prices midway through the second pricing window of July, leaving some motorists wondering why prices are changing before the usual review period comes to an end.
The development, according to the Chief Executive Officer of Star Oil Limited, Kwame Tieku, has been driven by sharp movements in the international oil market and exchange rate pressures that have increased the cost of importing petroleum products into Ghana.
Since the start of the current pricing window, global market prices of gasoline have increased by nearly 20%, while diesel prices have risen by about 25%, Mr. Tieku said.
At the same time, the Ghana cedi has experienced some depreciation against the US dollar, adding further pressure to the cost of fuel imports.
Explaining why prices are being adjusted before the end of the pricing window, the Star Oil CEO said the normal expectation that fuel prices remain unchanged for two weeks is only possible when global market conditions remain stable.
However, the current volatility in international markets has changed that situation.
“There are over 200 Oil Marketing Companies (OMCs) in Ghana. The majority purchase petroleum products on a daily cash-and-carry basis, meaning every new stock purchase is priced using prevailing international petroleum prices and the current exchange rate,” he explained.
This means that when global fuel prices rise or the cedi weakens, the cost of replacing fuel stocks also increases almost immediately.
For many OMCs, waiting until the next pricing window before adjusting prices could mean selling fuel at a loss because their next supply would cost significantly more.
Mr. Tieku said this is why some companies have had to increase prices before the current pricing window ends.
Star Oil, he noted, operates differently because of its ability to purchase large volumes of fuel in advance, allowing the company to protect customers from daily market fluctuations and maintain more stable prices.
However, he explained that during periods of extreme volatility, even this approach faces pressure.
“When many other OMCs increase their prices rapidly, motorists naturally shift their purchases to Star Oil,” he said.
While the company appreciates the confidence from customers, the increased demand can cause planned stocks for the pricing window to run down faster than expected.
The company is then forced to purchase additional volumes at higher international prices, which eventually affects pump prices.
Mr. Tieku stressed that the price adjustments are not because previously purchased fuel suddenly became more expensive, but because new replacement stocks must be bought at the prevailing higher market prices.
The development comes at a time when global energy markets remain unsettled following renewed tensions in the Middle East.
The Bank of Ghana, in its latest Monetary Policy Committee statement, warned that crude oil prices had risen above US$85 per barrel following the renewed conflict, creating fresh inflation risks for economies around the world.
The central bank said higher energy prices and supply chain disruptions could slow the pace of disinflation and force policymakers globally to become more cautious about further interest rate cuts.
For Ghanaian consumers, the impact of rising fuel prices goes beyond the filling station.
Fuel costs influence transportation fares, food distribution, production costs and the prices of everyday goods and services.
Mr. Tieku warned that if current market conditions persist, fuel prices could rise further from August 1, 2026, unless there is some form of intervention similar to measures introduced during the earlier phase of the US–Israel–Iran conflict.
