The Chamber of Petroleum Consumers (COPEC) is urging authorities to review Ghana’s price floor policy in the downstream petroleum sector, citing ongoing price competition among oil marketing companies (OMCs) as evidence of the benefits of a more liberalised market.

According to COPEC, increased competition allows efficient firms to offer better prices and value to consumers, ultimately improving outcomes across the sector.

The appeal comes at a time of heightened price rivalry between Star Oil and GOIL during the second pricing window of March, with both companies adjusting pump prices multiple times in response to each other’s strategies.

COPEC’s Executive Secretary, Duncan Amoah, said the current competitive environment is already delivering noticeable relief to consumers and could yield even greater benefits if the price floor is completely removed.

He noted that several OMCs, including Zen, JP, PETROSOL, and others, have contributed to keeping prices competitive, with Star Oil emerging as a strong price leader while GOIL continues efforts to regain its position.

Amoah explained that the competition has compelled companies to reduce margins where necessary to attract customers, even amid global pressures such as geopolitical tensions in the Middle East that typically push fuel prices higher.

He described the development as positive and said it should encourage policymakers to reconsider the price floor mechanism.

According to him, allowing market forces to operate freely would ensure that the most efficient companies—those offering the best prices, quality, and overall value—prevail.

Under the current pricing structure for the second window of March, the price floor has been set at GH¢11.57 per litre for petrol, GH¢14.35 for diesel, and GH¢10.67 for liquefied petroleum gas (LPG).

These benchmarks represent the minimum prices at which OMCs and LPG marketers are permitted to sell their products within the period.