A public exchange between the Managing Directors of GOIL and Star Oil has intensified debate within Ghana’s downstream petroleum sector over fuel pricing, competition, and the National Petroleum Authority’s (NPA) price floor policy.
Managing Director of GOIL, Edward Abambire Bawa, in a social media post, questioned claims by some oil marketing companies (OMCs) that fuel prices could be reduced further under the current pricing regime.
According to Mr Bawa, such claims lack credibility when the companies involved are unable to price petrol at the existing NPA-approved floor price.
“Some industry players are claiming that they can reduce prices further, yet in reality they cannot even compete at the approved floor price of GHS 9.80 for PMS in this pricing window,” he stated.
Mr Bawa noted that while the NPA has approved a floor price of GHS 9.80 per litre for petrol (PMS), some OMCs advocating deeper price cuts are selling above that level.
“If, as an OMC, you are calling for the opportunity to reduce prices further, it is reasonable to ask why you have not first reduced your PMS price to at least the floor of GHS 9.80, instead of selling at GHS 9.97,” he said, adding that pricing above the floor while calling for deregulation undermines such claims.
In a separate post, Star Oil Managing Director, Philip Tieku, defended his company’s pricing record and renewed calls for the removal of the NPA’s price floor policy.
Mr Tieku argued that the price floor prevents OMCs from introducing innovative pricing models that could benefit consumers, including discounted fuel sales during off-peak hours.
“Imagine StarOil pricing petrol at 9.50 per litre after 10pm each night till 4AM to support night time economy when demand is lower… but that will be below NPA floor price,” he wrote.
He described Star Oil as a company frequently criticised within the industry because of its customer-focused pricing strategy, claiming its competitive approach has strengthened competition rather than undermined it.
Mr Tieku also referenced the 2022 fuel price surge, stating that Star Oil used its then 162 stations to keep prices as low as possible for consumers while accusing unnamed competitors of simply following international price movements.
“They now come questioning our credibility in low pricing?” he asked.
The Star Oil MD reiterated his call for the NPA to scrap the price floor policy, arguing that removing the restriction would allow market forces to drive prices down further for consumers.
