The Centre for Environmental Management and Sustainable Energy (CEMSE) is urging the National Petroleum Authority (NPA) to sanction Oil Marketing Companies (OMCs) and Bulk Distribution Companies (BDCs) that adjust petroleum prices within an ongoing pricing window in response to changes in international crude oil prices.

Executive Director of CEMSE, Benjamin Nsiah, says petroleum price indicators are established for each pricing window, requiring OMCs and BDCs to comply with the prices communicated to consumers rather than make adjustments during the window.

His comments come as Brent crude oil prices have risen to the $100-per-barrel mark for the first time in recent months, amid escalating tensions in the Middle East.

Benjamin Nsiah argues that any upward adjustment by a BDC following a rise in international crude prices during an active pricing window would be contrary to the NPA’s price regulation.

“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,” he said.

He is therefore calling on the NPA to strictly enforce its regulations and prevent petroleum market players from making what he describes as mid-window price adjustments.

“I think that the NPA must enforce its regulation to the letter to ensure that none of the BDCs engage themselves in these malpractices,” he added.

Benjamin Nsiah also cautioned OMCs against responding to developments on the international market by adjusting pump prices before the end of an approved pricing window.

“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,” he stressed.

He said the regulator must consequently impose sanctions on OMCs that depart from the approved pricing indicators.
Higher prices expected in subsequent windows.

While CEMSE does not expect the recent surge in Brent crude prices to affect petroleum prices during the first pricing window of September, Benjamin Nsiah anticipates upward pressure on fuel prices in subsequent windows if crude oil prices remain elevated.

He explained that movements in international crude prices feed into the cost of refined petroleum products and could eventually translate into higher prices at the pump when the next pricing window is determined.

However, he stressed that petroleum prices should remain guided by the indicators established by the NPA for the current window.

“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,” Benjamin Nsiah mentioned.

The development comes as rising geopolitical tensions in the Middle East increase uncertainty over global oil supply and prices, with Brent crude touching the $100-per-barrel threshold.

It comes a day of heightened conflict, including a US strike on Iranian oil tankers, while Iran-backed Houthi rebels earlier attacked Saudi Arabia.

For Ghana, a sustained rise in crude oil prices could increase the cost of refined petroleum products and put renewed pressure on domestic fuel prices, particularly in subsequent pricing windows.