Renewed tensions between the United States and Iran after the collapse of peace efforts are keeping Ghana’s fuel market on edge, with uncertainty in the Middle East continuing to threaten price stability, according to the CEO of COMAC, Dr Riverson Oppong.
The renewed confrontation between Washington and Tehran has revived fears over global oil supply disruptions.
Markets remain volatile as investors watch for further military or diplomatic developments, raising concerns about the outlook for crude oil prices and their impact on fuel-importing countries such as Ghana.
Speaking on JoyNews’ PM Express Business Edition on Thursday, Dr Oppong said the latest setback in ceasefire efforts was unsurprising, as uncertainty has become the defining feature of the conflict.
“Personally, I wasn’t shocked to hear the turnaround of the peace deal because we’ve lived within this uncertainty for the past months, and only Trump knows when he’s going to ceasefire, or probably only Iran knows when they’re actually going to ceasefire,” he said.https://www.youtube.com/embed/ay7p0QyQ5Yc?si=K6WxYzo72tUV28lr
He warned that the uncertainty continues to expose Ghana’s downstream petroleum sector to significant risks as fuel prices swing sharply on the international market.
According to him, the volatility affects the entire fuel supply chain, including Oil Marketing Companies (OMCs) and Bulk Distribution Companies (BDCs).
Dr Oppong explained that rising prices are generally easier for industry players to manage because they can pass on higher costs to consumers. Falling prices, however, create more severe financial pressure.
“As far as revenue is concerned, it is a bit easier when prices are moving up, but when prices are going down, it is a bit deadly, not only to the OMCs but to the BDCs as well,” he said.
He said the biggest challenge comes when companies import fuel at higher prices only for international prices to decline before the products reach the market.
“Imagine buying at a higher price within a window, and you wake up, and the next window price has gone down. You’ve knocked your price,” he explained.
The COMAC CEO noted that while hedging is often presented as a solution for managing price risk, it is not always practical for Ghana’s retail fuel business.
“We can talk about hedging and all that stuff, but with the retail business, it’s a bit difficult to hedge,” he said.
His comments come as Ghana’s petroleum industry closely monitors developments in the Middle East, where renewed US-Iran tensions have added another layer of uncertainty to an already volatile global energy market.
For Ghana, which imports refined petroleum products, prolonged instability could continue to influence fuel pricing, squeeze industry margins and complicate planning for businesses across the downstream sector.
Dr Oppong said until there is greater certainty over the geopolitical situation, fuel marketers will continue to operate in an environment where sudden price movements remain a constant risk.
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