The first fuel pricing window in November has opened with mixed pricing strategies from Oil Marketing Companies (OMCs), as fluctuating global prices and a weakening cedi push some oil marketing companies to adjust rates while others opt to maintain them.
Petroleum product prices mainly have been driven by two main factors: the performance of the Cedi against major international currencies, and the trend in global market prices for refined petroleum products. These combined forces either makes oil marketing companies in the country increase, maintain or decrease prices at the pump.
However, the cedi has in recent months fared badly against major trading currencies, while the price of refined petroleum products on the international market has also been skyrocketing, compelling OMCs to also increase price at the pumps since the first pricing window in October.
With the first pricing window of November commencing, development on the market per Citi Business News observation presents mixed signals as OMCs have taken different stances on fuel pricing. While some have maintained prices, others have also upwardly adjusted prices of some refined petroleum products.
Allied Oil, for example, previously sold a litre of petrol at 13.60 during the second pricing window of October but has now raised it to 13.65, while keeping the price of diesel steady at 13.99 .
Star Oil, a key market player, has kept prices for both petrol and diesel unchanged from October’s second pricing window, currently selling petrol at 13.99 and diesel at 14.19 in the first pricing window of November.
Analysts suggest that Allied Oil’s decision to raise petrol prices reflects the impact of global price increases on its cost structure. In contrast, Star Oil’s decision to maintain prices could indicate a strategy to absorb the fluctuations temporarily, potentially aiming to sustain customer loyalty by avoiding immediate price hikes.
