Allied Oil quotes lowest petrol price

Allied Oil, an indigenous downstream oil marketing company, at the last petroleum review quoted the lowest price in the market.

At the current de-regulation price review, which spans from August 1st to August 16th, Allied Oil quoted its petrol price at GH¢3.300 per litre and GH¢2.889 per litre for Diesel. 

The quoted price is approximately a 0.07 pesewas drop in the price of petrol, while the price of diesel is down by 0.04 pesewas.

This is far lower than the average industry benchmark price quoted by Oil Marketing Companies (OMCs), which stands at Gh¢3.371 for petrol and GH¢2.934 for Diesel.  

GOIL, which has set the benchmark by constantly quoting the lowest price since the exercise started on June 16, reduced the price of Petrol from GH¢3.46 per litre to GH¢ 3.310 per litre, and diesel from GH¢3.07 per litre to GH¢2.895 per litre.

Engen Ghana Limited is also quoting GH¢ 3.310 per litre for Petrol and GH¢2.895 per litre for Diesel across its 25 filling stations nationwide.

Shell Ghana Limited is quoting GH¢3.430 per litre for Petrol from GH¢3.49 per litre, and GH¢2.990 per litre for diesel from GH¢3.10 per litre.

The price-review of petroleum products is in conformity with the de-regulation of petroleum products that took effect from June 16th, 2015.

The reduction was attributed to marginal stabilisation of the local cedi currency to major currencies, and the world crude oil price during the fourth de-regulated pricing regime for the period.

This decision by Allied Oil affirms its corporate leadership strategy of continuously showing commitment to redefining value for money for its customers as it ensures efficiency and reduces cost in the fuel retail market.

With implementation of the deregulation, the National Petroleum Authority (NPA) no longer changes or determines the price of petroleum products, but is only in charge of ensuring the products sold are up to standard.

Although the Deregulation Act was passed in 2005 and had made a lot of progress -- such as allowing private oil players, Bulk Distribution Companies and Oil Marketing Companies to come on-board in the importation and sale of oil in the country -- price liberation which was one of the core mandates of the Act had not been achieved; hence government’s decision to do it now.

Deregulation of the sector is also aimed at ending the perennial fuel shortages which hit the country, and ensuring that private players will no longer be able to cheat customers.

As part of the deregulation process, the OMCs are also under obligation to display their ex-pump prices at their retail outlets to allow the NPA monitor application of the prescribed petroleum pricing formula; to ensure that all petroleum service providers apply the formula in the right way and defaulters are duly sanctioned.

The NPA has subsequently directed OMC and LPG Marketing Companies (LPGMCs) to submit their indicative ex-pump prices to NPA two days before every pricing window.

The indicative ex-pump prices submitted by an OMC or LPGMC will represent its maximum indicative price for the two-week period of the first to 15th and 16th to the end of the month.

Global oil industry watchers have projected that fuel prices will drop further in the next month as the oil price continues its decline.

Brent crude has dropped to below US$50 a barrel, which is good news for consumers hit by the rising interest rate and increased food prices. The group of oil producing countries, OPEC, said it’s confident that prices will recover by December. 

OPEC said it expects a more stable 2016, predicting rising global demand. This is the group’s latest indication that it’s sticking together to defend prices in a very competitive market.