Oil marketing companies are finalizing discussions on how much each litre of petroleum product would be sold at the pumps effective tomorrow.

The local currency, which has been a major determinant of petroleum prices, has gone down by about 5 percent to the US dollar over the past two weeks. Joy Business spoke to many companies who confirmed that they are planning to increase their prices marginally.

There are about 90 Oil Marketing Companies in the country and some are also taking into consideration the falling crude oil price. Taking that into account, Joy Business has learnt that some would prefer a marginal reduction in the ex-pump prices.

Meanwhile, with the current mechanism where Bulk Oil Distributers and Oil Marketing Companies are setting their own prices there is the likelihood that some may keep the prices unchanged at the pumps just because of the competition.

One of the Oil Marketing Companies, for instance told Joy Business’ George Wiafe that “it might not be wise to increase prices of the product if the expected margin of adjustment is not much”.

According to him, “it cost us so much to even go around all our service stations in the country to do the necessary changes when there should be a review. So it might be prudent to hold on to our price if increment is marginal.”

Prices of petroleum products at the last review on July 15 went down between 10 to 20 percent with GOIL and UBI said to be offering the lowest prices on the market

In a related development, the Chamber of Bulk Oil distributors have released its market update report which actually inform the public with trends and key events within the petroleum sector.

Click here to download the BDC’s market report