Fuel prices in Ghana reduce again

Accra, Sept. 3, GNA - Prices of petroleum products has reduced drastically at the sixth consecutive price review since June 16, attributed mainly to appreciation of the cedi against other major currencies and the fall in the world oil prices.

EV Oil Company Limited is quoting the lowest price of super GHȼ3.070 per litre and diesel GHȼ2.820 per litre whilst Benab Oil Company Limited is quoting the highest of GHȼ3.360.00 per litre for super and GHȼ2.942 per litre for diesel.

A Ghana News Agency (GNA) team monitoring the fortnight price review in accordance with the petroleum deregulation regime Ghana Oil Company Limited (GOIL), the only indigenous downstream oil marketing company in the country has reduced the price of fuel selling Super XP at GHȼ3.100 per litre and Diesel XP at GHȼ2.820 per lire.

At the sixth consecutive de-regulation price review which spans September 1, to September 16; Engen Ghana Limited is also quoting GHȼ3.094 per litre for Petrol and GHȼ2.840 per litre for Diesel across its 25 filling stations nationwide.

Total Ghana Limited has also pegged the price at GHȼ3.160 per litre for Petrol and GHȼ2.802 per litre for diesel.

Shell Ghana Limited is also quoting GHȼ 3.100 per litre for Petrol from GHȼ2.820 per litre for diesel; Star Oil Company Limited is quoting GHȼ3.099 per litre for Petrol and GHȼ2.819 per litre for diesel; and Allied Oil Company Limited is selling petrol at GHȼ3.114 per litre and diesel GHȼ2.841 per litre.

At So Energy Ghana Limited, petrol is pegged at GHȼ3.285 per litre and GHȼ 2.900 per litre for diesel; UBI Petroleum Ghana Limited, is also quoting GHȼ3.330 per litre for petrol and GHȼ2.920 per litre for diesel; and Universal Oil Company Limited quoting GHȼ3.090 per litre for petrol and GHȼ2.840 per litre for diesel.

The prices review of petroleum products is in conformity with the de-regulation of petroleum products which took effect from June 16.

The reduction was attributed to the marginal stabilisation of the local currency the cedi to other major currencies and the world crude oil price during the sixth de-regulated pricing regime for the period.

Mr Patrick Kwame Akpe Akorli, GOIL Managing Director (MD) told the GNA in an interview maintained that the oil indigenous oil marketing company in the country would continue to work hard through prudent management to ensure that it dominates the downstream sector.

He said: 'GOIL will continue to offer competitive price for petroleum products to ensure that Ghanaians enjoy quite a relief from deregulation and any windfall from the world crude oil price fall as well as the occasional appreciation of the local currency.'

Mr Akorli however noted that: 'People must understand the pricing mechanism, its social economic impact, the correlation between pricing and smuggling of oil products, its contributions to fuel shortages, dangers of fuel adulteration and other related issues.

'We must also understand full deregulated regime, cost benefits of fuel subsidies and its alternatives and information sharing mechanism in the petroleum chemical industry'.

The GOIL MD explained that deregulation has generated healthy competition and encourages oil companies to be more effective and efficient, adding that 'deregulation has compelled OMCs to improve their service'.

'Under a regulated set-up, however, domestic oil companies have little reason to strive to meet world class standards'.

Mr Akorli explained that under a regulated set-up, oil companies are guaranteed returns on their investments. Hence, there was no incentive for them to provide customers with better service.

However, under a deregulated environment, the industry players are to compete aggressively against each other for customers, and consequently, returns on their investments.

'On the other hand, it should be noted that with the deregulation of the industry, the industry participants cannot resort to malpractices such as violating environmental laws,' he said.

Ghana as an emerging oil producer must continue to adopt a comprehensive mechanism to educate the citizenry to understand the business language in the petroleum industry.

'We must avoid uninformed oil politics as operations in the industry is not a game but serious business played in an international environment. As a nation we must speak and work towards a common direction'.

The government has decided to wash its hands off the pricing of petroleum products. The strategy is the final phase of Ghana's petroleum downstream deregulation policy.

National Petroleum Authority (NPA) has explained that the increment or decrease of petroleum prices is no longer the preserve of the government but is determined by market forces that take into consideration the international price of crude oil, the foreign exchange rate, the fall or rise of the cedi, import duties, taxes and other factors.

According to the NPA document obtained by the GNA it has put in place mechanism to sanctions on Bulk Distribution Companies and OMCs that would go beyond the average price indicated.

The punishment would be the suspension of operating licences. In the event that the quality of products is found to have been compromised, it would result in the withdrawal of licences after a third warning.

The deregulation of the petroleum downstream sector started with the establishment of the NPA, which decided to deregulate the industry that used to be controlled by the Tema Oil Refinery, the Bulk Oil Storage and Transportation Company Limited, the Ghana National Petroleum Corporation and a few multinational companies.

GNA