Some OMCs Keep Fuel Prices Unchanged Despite Projected Increases
Accra, Ghana
Despite projections of marginal price adjustments in petroleum products, several major Oil Marketing Companies (OMCs) in Ghana have kept prices at the pumps unchanged, citing competitive market dynamics.
The Chamber of Oil Marketing Companies (COMAC) had last week forecast slight upward adjustments in petrol and liquefied petroleum gas (LPG) prices, while predicting a marginal decline in diesel prices. The chamber projected that petrol could rise between 0.39% and 2.71% per litre, with LPG increasing up to 2.34% per kilogram. Diesel, however, was expected to fall by 0.72% per litre.
But market checks conducted over the weekend revealed that most OMCs maintained their prices. Industry sources explained that the expected increments were not significant enough to trigger immediate adjustments and that competition in the downstream sector influenced the decision.
Currently, Star Oil, Ghana’s market leader, has maintained petrol at GH¢11.97 per litre and diesel at GH¢13.45 per litre, although it has reversed discounts previously offered at some stations. Allied Oil has gone a step further by reducing its petrol price by five pesewas, now selling at GH¢11.60 per litre.
Meanwhile, COMAC Chief Executive, Dr. Riverson Oppong, noted that the highly competitive nature of the sector—where over 200 OMCs operate nationwide, with just five controlling more than 50 percent of the market—will likely keep pump prices relatively stable in the short term.
Mixed Market Signals
The chamber attributed the mixed pricing outlook to two main factors:
- A 0.8% depreciation of the cedi against the US dollar, slipping from GH¢10.68 to GH¢10.77.
- International price movements, which saw diesel drop by 5.22%, while petrol and LPG rose by 1.89% and 2.87% respectively.
Additionally, some industry players argue that the recent GH₵1 levy imposed on petroleum products has intensified pricing pressures, limiting the ability of OMCs to absorb changes in global oil prices.
Outlook
While most OMCs have opted to keep prices steady, insiders hint that adjustments may be implemented later in the week depending on international market performance and forex stability. Consumers, however, are likely to enjoy relative price stability at the pumps in the immediate term.
Source – My News Ghana
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