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Fuel Prices Begin to Rise as Ghana Enters September Pricing Window
Some major Oil Marketing Companies (OMCs) have started adjusting their pump prices as the first petroleum pricing window for September gets underway.
The developments follow an initial decision by several major OMCs to keep their prices unchanged, despite industry projections of higher petrol and diesel prices during the September pricing window.
Star Oil raises prices again
Star Oil has increased its pump prices for the second time since the start of the September pricing window.
The company has raised diesel from GH¢16.97 to GH¢17.26 per litre, while petrol has increased from GH¢14.97 to GH¢15.43 per litre.
The price of RON 95, however, remains unchanged at GH¢17.97 per litre.
Star Oil attributed the latest increases to higher international refined petroleum product prices, despite the recent appreciation of the Ghana cedi.
GOIL maintains pump prices
State-owned GOIL has opted to maintain the prices it introduced during the second pricing window of August.
Petrol is selling at GH¢15.43 per litre, while diesel remains at GH¢17.26. Super XP 95 is also unchanged at GH¢17.97 per litre.
The company said keeping its prices stable across the various products is intended to provide some relief to consumers amid prevailing pressures in the petroleum market.
Shell holds prices as TotalEnergies raises petrol
Shell has also maintained its pump prices, with petrol selling at GH¢15.99 per litre and diesel at GH¢17.59, according to checks on Wednesday morning.
Its V-Power product is retailing at GH¢17.99 per litre.
TotalEnergies, meanwhile, has increased its petrol price from GH¢15.99 to GH¢16.18 per litre.
The company has maintained its diesel price at GH¢17.59 per litre, while Excellium 95 is selling at GH¢17.99 per litre.
The differing price movements reflect the competitive nature of Ghana’s downstream petroleum market, where OMCs monitor international refined product prices, exchange-rate movements and competitors’ pricing decisions when setting pump prices.
With Brent crude trading above $95 per barrel amid renewed geopolitical tensions in the Middle East, continued pressure on international oil markets could lead to further adjustments at the pumps if the trend persists.
September price floors increase
The National Petroleum Authority (NPA) has raised the price floors for petrol and diesel for the first pricing window of September compared with the second window of August.
The price floor for petrol has been set at GH¢14.53 per litre, up from GH¢13.92 per litre in the previous pricing window.
For diesel, the price floor has increased to GH¢15.60 per litre, from GH¢15.19.
LPG was the only major petroleum product to record a reduction in its price floor, falling from GH¢10.98 to GH¢10.85 per kilogram.
Price floors represent the minimum thresholds at which OMCs and LPG Marketing Companies (LPGMCs) can sell petroleum products during a particular pricing window.
Under the Petroleum Product Pricing Guidelines, all OMCs and LPGMCs are required to comply with the applicable price floors.
The floors, however, exclude premiums charged by International Oil Trading Companies, operating margins of Bulk Import, Distribution and Export Companies, as well as marketers’ and dealers’ margins.
These components are determined independently by the respective companies in accordance with the applicable pricing guidelines.
Government extends diesel relief measure
Meanwhile, the government has extended its GH¢2 per litre reduction in the regulatory margin on diesel into the September pricing window.
The measure forms part of efforts to cushion consumers against rising petroleum prices.
The intervention is expected to moderate the impact of higher international petroleum product prices on diesel consumers as OMCs continue to review their pump prices.