Fuel prices in Ghana have started climbing for the second pricing window of September, with Star Oil increasing petrol to GH¢16.77 per litre and diesel to GH¢17.77.
The new prices took effect on Wednesday, September 16, as oil marketing companies began responding to higher international petroleum costs and a weaker cedi.
Star Oil’s petrol price rose from GH¢15.17, an increase of GH¢1.60 per litre or about 10.5%. Diesel moved from GH¢16.97 to GH¢17.77, representing a 4.71% adjustment.
In a social media notice, the company blamed the increases on rising petroleum product prices on the international market and the cedi’s slight depreciation against the US dollar.
Other OMCs are expected to announce their prices, although the response across the market may not be immediate. Some companies are watching competitors before deciding how much of the increased cost to pass on to motorists.
GOIL holds back for now
GOIL Group Chief Executive Edward Bawa has indicated that the state-owned company will study the market before changing its pump prices.
Mr Bawa said GOIL must recover its costs but also recognise the pressure higher prices place on households and commercial drivers.
“In as much as we need to at least cover our costs, we need to ensure that our actions also go to ameliorate the effects of increases in prices for them,” he said.
With more than 200 OMCs operating in Ghana, prices could vary between stations as companies adopt different margins and competitive strategies.
The adjustment is likely to revive calls for higher transport fares. The Ghana Private Road Transport Union has already raised concerns about rising operating expenses, including fuel, spare parts and insurance.
Crude prices and cedi drive increase
The Chamber of Oil Marketing Companies said international crude and refined product prices were the main drivers of the latest increases.
The Chamber also reported that the cedi depreciated by 1.01% to an average of GH¢11.4849 to the dollar between August 27 and September 11.
Bank of Ghana interventions provided some relief, while government support of GH¢2 per litre helped moderate the increase in diesel prices, COMAC said.
The National Petroleum Authority has raised the minimum price floors applying during the new window.
The petrol floor moved from GH¢14.53 to GH¢16 per litre, while the diesel floor increased from GH¢15.60 to GH¢16.77. The minimum price for liquefied petroleum gas was fixed at GH¢10.97 per kilogramme.
Those figures are not necessarily what motorists will see at filling stations. They exclude trading premiums and the operating margins of bulk distributors, marketers and dealers.
That leaves each OMC to determine its final pump price within the approved pricing framework. Star Oil has moved first. The rest of the market now has to decide whether to follow quickly or absorb part of the increase to retain customers.
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