Star Oil and rival oil marketing company JP have reduced their petrol and diesel prices, making changes at their service stations on Monday, 9 November, one week before Ghana’s next scheduled fuel-pricing window.
Star Oil cut the price of petrol by 38 pesewas per litre, from GH¢16.35 to GH¢15.97. Its diesel price fell by 8 pesewas, moving from GH¢18.45 to GH¢18.37 per litre.
JP also lowered both prices. Petrol dropped from GH¢16.43 per litre, the price quoted on 16 October, to GH¢15.95. Diesel was reduced by 62 pesewas, from GH¢18.97 to GH¢18.35 per litre.
The reductions come during the current pricing period, following an adjustment by Star Oil at the beginning of November. At that point, the company reduced its petrol price but made a small increase to diesel.
Fuel prices at the pumps have continued to be supported by the government’s GH¢2 billion fuel price cushion, which is intended to help maintain stability.
Market leader GOIL had not changed its pump prices since the start of November and had not announced a reduction by Monday.
Neither Star Oil nor JP issued an official explanation for their latest price cuts. However, industry analysts pointed to stronger competition between retailers and possible savings linked to Star Oil’s acquisition of a bulk oil distribution licence, which allows it to source petroleum products directly.
Further reductions possible
Ghana’s standard petroleum price reviews are held twice each month, on the first and 16th days. The National Petroleum Authority (NPA) also permits oil marketing companies to alter their pump prices between the scheduled dates, provided they comply with its pricing guidelines.
Wider market conditions suggest that fuel prices could fall again from Monday, 16 November. International crude oil prices have declined from above US$100 a barrel to about US$93, while the Ghana cedi has strengthened against the US dollar.
Those developments could reduce the cost pressures facing oil marketing companies during the next review period, although no further price change has been confirmed.
Consumers and downstream operators are also monitoring the government’s fuel subsidy programme, which is scheduled to expire on 30 November.
No decision has yet been announced on whether the programme will be extended into December.
