Fresh tensions between the United States and Iran following the collapse of renewed peace efforts are once again rattling global oil markets, with Ghana’s downstream petroleum sector bracing for renewed fuel price volatility.
The Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, has warned that the uncertainty is making it increasingly difficult for Oil Marketing Companies (OMCs) and Bulk Distribution Companies (BDCs) to protect their revenues, particularly when fuel prices decline abruptly.
Speaking on JoyNews’ PM Express Business Edition on Thursday, Dr Oppong said the latest geopolitical developments were consistent with the uncertainty that has defined the global oil market in recent months.
“I wasn’t shocked by the collapse of the peace deal because we’ve lived within this uncertainty for the past months. Only Trump knows when there’s going to be a ceasefire, or probably only Iran knows when they’re actually going to ceasefire,” he said.
According to him, the unpredictable geopolitical climate has fuelled sharp swings in crude oil prices, creating significant operational risks for petroleum dealers across Ghana.
Dr Oppong explained that while rising fuel prices can improve revenues for marketers, sudden price declines pose a far greater financial threat.
“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 stated.
He noted that many fuel dealers purchase petroleum products at higher prices only to see market prices fall before they are able to sell their stock, forcing them to absorb losses as inventory values decline.
“Imagine going to buy 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.
Although hedging is commonly used in international commodity markets to manage price risks, Dr Oppong said the strategy is largely impractical for Ghana’s retail fuel industry.
“We can talk about hedging and all that stuff. I mean, with the retail business, it’s a bit difficult to hedge,” he said.
His remarks come as global energy markets remain on edge following renewed hostilities between the United States and Iran after diplomatic efforts failed to secure a lasting breakthrough.
The renewed uncertainty has heightened concerns over potential supply disruptions, with traders closely monitoring developments that could trigger another round of sharp increases or declines in crude oil prices.
For Ghana’s downstream petroleum sector, the volatility continues to threaten fuel pricing stability, erode inventory values, and squeeze already thin operating margins.
Dr Oppong said the persistent fluctuations underscore the mounting pressure on OMCs and BDCs, which must navigate an increasingly unpredictable global oil market while sustaining operations in the domestic fuel industry.
