Fuel Price Battle Signals Need to Scrap Price Floor
The ongoing price competition among oil marketing companies (OMCs) has reignited calls for a review of Ghana’s fuel price floor, with the Chamber of Petroleum Consumers arguing that current market dynamics demonstrate the advantages of a more liberalised downstream sector.
COPEC maintains that allowing market forces to operate freely encourages efficiency, innovation, and better pricing for consumers. According to the Chamber, the recent wave of price adjustments by major OMCs underscores how competition can drive down costs, even in challenging global conditions.
The renewed debate comes at a time when two key players, Star Oil and GOIL, are locked in a fierce price battle during the second pricing window of March. Both firms have revised their pump prices several times, often reacting directly to each other’s moves in a bid to attract customers.
Executive Secretary of COPEC, Duncan Amoah, noted that such rivalry is already delivering tangible benefits to consumers. He argued that removing the price floor entirely would further enhance competition and lead to even more favourable outcomes.
He pointed out that several OMCs, including Zen Petroleum, JP, and PETROSOL, have also contributed to keeping prices competitive. According to him, the market is naturally rewarding companies that offer better pricing, quality service, and overall value.
Amoah emphasised that even amid geopolitical tensions in the Middle East, factors that typically push fuel prices upward,OMCs in Ghana are striving to cushion consumers through strategic pricing.
He described the current situation as a clear signal to policymakers to reconsider the price floor policy, stressing that a fully competitive market ultimately benefits both consumers and efficient industry players.
Under the current pricing regime for the second window of March, the price floor has been set at GH¢11.57 per litre for petrol, GH¢14.35 for diesel, and GH¢10.67 for liquefied petroleum gas (LPG). These benchmarks represent the minimum prices at which products can be sold.
COPEC insists that scrapping these limits could unlock further price reductions and strengthen competition across the sector.
