Ghana oil marketers project reduction in petrol, diesel prices from September 16

The Association of Oil Marketing Companies (AOMCs) in Ghana is projecting a marginal reduction in petrol and diesel prices starting from September 16 — if the cedi remains stable against the US dollar.

Speaking on JoyNews’ PM Express on September 5, Riverson Oppong, chief executive of the AOMCs, said the recent stability in key factors influencing petrol prices could lead to a price drop at the pumps.

“All the variables that influence prices of petroleum products have been fairly stable over the past week and if that is sustained going forward, then there should be a reduction in prices at the pumps,” Oppong said.

TheCable checks show that the price of a litre of petrol is between GH¢13.63 (N1,472.31) and GH¢14.35 (N1,550.08) depending on the company, while the price of diesel ranges between GH¢13.99 (N1,511.19) and GH¢14.60 (N1,577.1).

According to the Bank of Ghana, the exchange rate of the cedi is N108.02 against the naira as of September 11.

Oppong said the cedi’s performance will be a crucial factor in determining the price review by the oil marketing companies.

The chief executive dismissed criticism that OMCs are slow to adjust prices when the market conditions favour a reduction.

“There is always a reason why the OMCs delay in reviewing prices at the pumps, and that has nothing to do with the arguments that they want to shortchange consumers,” he added.

He said the association is actively working to address recent consumer complaints about service quality.

Oppong also said the group has launched its own initiative to ensure that members adhere to the highest standards for storing products at service stations.

This initiative, he said, could significantly help address the issue and reduce consumer complaints.

“Our sector can be described as the most regulated in the industry. We are regulated by the National Petroleum Authority, and Ghana Standards Authority. You shouldn’t see some of these product quality issues coming up that often,” he said.

“Looking at the progress that we have made when it comes to developing the sector, we should not be having these kinds of challenges.”

In August, the OMCs reduced the pump prices of both petrol and diesel.

While Ghanaians are looking forward to energy cost reduction, a similar development desired by their Nigerian counterparts may be a pie in the sky.

On September 2, The Nigerian National Petroleum Company (NNPC) Limited increased the price of petrol across its retail outlets to N855 per litre — up from N600.

The national oil firm said the increase — which had elicited criticisms and triggered a surge in transport costs — was due to the deregulation of the petroleum industry, allowing pump prices to be ‘determined by market forces’.