The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has welcomed recent fuel price reductions by some Oil Marketing Companies (OMCs), describing the emerging price competition as a clear indication that Ghana’s deregulated downstream petroleum sector is working.

Speaking on Joy FM’s Middaynews on Tuesday, January 6, Mr Amoah said one of the most positive outcomes of deregulation is the emergence of “price wars”, where OMCs compete by lowering prices to attract consumers.

He described the latest reductions as “very good news for the Ghanaian consumer”, particularly at a time of sustained cost-of-living pressures.

His comments follow a nationwide price reduction by GOIL, effective Tuesday, which has resulted in petrol selling below GH¢11 per litre at some pumps for the first time since 2022. GOIL had reduced petrol prices to GH¢11.99 per litre last week before the latest downward adjustment.

Mr Amoah singled out Star Oil for praise, noting that the company has consistently positioned itself as a consumer-friendly brand through competitive pricing.

He revealed that COPEC received notification earlier in the day that GOIL had reduced petrol prices by nearly GH¢2 per litre, with additional reductions of about GH¢1 to GH¢2 on diesel and other products. However, he said Star Oil responded swiftly by further cutting its already lower prices.

“At the time GOIL came in at about GH¢10.99, Star Oil, which was already trading at GH¢10.89, decided to go down further to GH¢10.56, delivering an additional reduction of about 30 pesewas per litre,” he explained.

According to Mr Amoah, the rapid price adjustments are restoring public confidence that OMCs are not colluding to fix prices.

“It is one of those days you gain confidence as a Ghanaian that the market is not doing what you would have termed cartelisation, where they meet in a room and agree to charge Ghanaians a fixed price,” he said. “There is price differentiation. There are price wars happening now.”

He also observed that the competition has compelled GOIL, once the market leader, to respond more aggressively to consumer preferences.

“I am happy that GOIL, which used to be number one and has been displaced by Star Oil, is suddenly waking up to the reality that consumers are choosing pricing, quality products and brands that seem sensitive to them,” he said.

Mr Amoah urged other major players, including Shell and TotalEnergies, which are still pricing fuel relatively higher, to respond to the prevailing market trend.

“The consumer is really price-sensitive at this point, and I will not be surprised if volumes of those still charging higher prices begin to shrink within this window,” he added.