The Chamber of Petroleum Consumers (COPEC) is anticipating the intense price competition in the downstream petroleum sector to continue into the second pricing window of January, following aggressive price cuts by major oil marketing companies (OMCs) earlier this month.

The outlook comes after what COPEC describes as a price war among leading OMCs during the first pricing window of the year, driven by heightened competition and growing price sensitivity among consumers.

Executive Secretary of COPEC, Duncan Amoah, says the trend is delivering clear benefits to consumers and has dispelled earlier concerns about possible collusion among OMCs in a fully deregulated market.

He maintains that sustained pricing competition is healthy for the sector and supports consumer welfare.

“What Goil has done this week is very instructive, that they can cut a lot of things and be able to go down significantly to give their consumers the kind of relief that they think the consumer deserves. We applaud them.

“Effectively, same day, Star Oil also responded and said, okay, we can go down further. And then you had Total come up to also say they could also go down and they have gone down.

“So, for us, price war, it’s the best thing that the Ghanaian consumer can get from the oil marketing companies. We are hoping that the other OMCs that have not responded would also respond so that every Ghanaian living everywhere can be able to get a very efficient price that makes their pockets easier. We live to see what happens in the second window January, if the price wars will be sustained.

“But the more it sustains itself, the better it is for the downstream so that they don’t only go for margins, but they also go for volumes because if your prices are favorable or fair, the consumer will respond. I think that the major OMCs have demonstrated that they are now moving towards a price sensitivity position that informs how they also fix what they put out there to the consumer,” he said in a Citi Business News interview.

Fuel prices declined further in the first pricing window of January as competition intensified. Market leader Star Oil kicked off the year with two price adjustments in the first week, a move industry players attribute to competitive pressures, particularly from state-owned GOIL.

Market leader Star Oil, which made early price adjustments at the start of the year in line with industry expectations, announced further reductions. A litre of petrol is now selling at GH¢10.56, down from GH¢10.86, while diesel has declined to GH¢11.56 from GH¢11.96. Ron 95 is also selling at GH¢12.96, down from GH¢13.56.

Selected Star Oil outlets across the country are offering additional promotional discounts, with petrol selling at GH¢10.36 per litre and diesel at GH¢11.36.

State-owned GOIL also reviewed prices downward. Petrol is selling at GH¢10.99 per litre, diesel at GH¢11.96, while Super XP 95 is priced at GH¢13.97.

At Shell outlets, petrol is now selling at GH¢11.68 per litre, with diesel priced at GH¢12.38. TotalEnergies has matched similar price points, selling petrol at GH¢11.68 and diesel at GH¢12.38 per litre.

PETROSOL likewise reduced prices, with petrol now selling at GH¢11.65 per litre and diesel at GH¢12.35. In the second pricing window of December, PETROSOL had reduced petrol prices to GH¢12.48 per litre, with diesel also selling at GH¢12.48.