The first fuel pricing window in November has opened with mixed strategies from Oil Marketing Companies (OMCs) in response to fluctuating global prices and a weakening cedi. While some OMCs have adjusted rates, others have opted to maintain them.
Petroleum product prices are primarily influenced by two factors: the performance of the cedi against major international currencies and trends in global market prices for refined petroleum products. These factors collectively determine whether OMCs in the country increase, maintain, or decrease prices at the pump.
In recent months, the cedi has performed poorly against major trading currencies, coinciding with rising prices for refined petroleum products on the international market. This combination has compelled OMCs to increase prices at the pumps since the first pricing window in October.
As the first pricing window of November commences, market observations by Citi Business News reveal mixed signals, with OMCs taking different stances on fuel pricing. Some have maintained prices, while others have increased prices for certain refined petroleum products.
Allied Oil, for example, previously sold a litre of petrol at 13.60 cedis during the second pricing window of October but has now raised it to 13.65 cedis, while keeping the price of diesel steady at 13.99 cedis.
Star Oil, a key market player, has kept prices for both petrol and diesel unchanged from October’s second pricing window, currently selling petrol at 13.99 cedis and diesel at 14.19 cedis in the first pricing window of November.
Analysts suggest that Allied Oil’s decision to raise petrol prices reflects the impact of global price increases on its cost structure. In contrast, Star Oil’s decision to maintain prices could indicate a strategy to absorb the fluctuations temporarily, potentially aiming to sustain customer loyalty by avoiding immediate price hikes.
