Ghana’s downstream petroleum sector is seeing an unusually public dispute over fuel pricing, with a debate that traditionally plays out in boardrooms now spilling onto social media platforms, pitting two of the country’s market-leading oil marketing companies against each other.
Edward Abambire Bawa, Group Chief Executive Officer and Managing Director of GOIL Plc, has challenged claims by rival Star Oil that petrol prices could be reduced to as low as GH¢9.50 per litre between 10 p.m. and 4 a.m. to support the government’s night-time economy agenda.
Bawa said such proposals lacked credibility, arguing that firms making the case for deeper price cuts were already pricing above the National Petroleum Authority’s approved floor.
“Some industry players are claiming that they can reduce prices further, yet in reality they cannot even compete at the approved floor price of GHS 9.80 for PMS in this pricing window,” Bawa said.
“These are the NPA-approved floor prices. If, as an OMC, you are calling for the opportunity to reduce prices further, it is reasonable to ask why you have not first reduced your PMS price to at least the floor of GHS 9.80, instead of selling at GHS 9.97,” he added. “Calling for deeper price reductions while pricing above the regulated floor undermines the credibility of that claim.”
The chief executive of Star Oil suggested that deeper price cuts during off-peak hours could help support Ghana’s night-time economy by lowering transport and logistics costs.
The proposal has drawn attention amid a broader public debate on fuel pricing, competition among oil marketing companies, and the role of regulation in balancing affordability with market stability.
Bawa said the NPA-approved floor prices were designed to prevent destructive pricing and ensure sustainability across the downstream petroleum sector. He questioned why firms calling for additional reductions were not already pricing at the regulatory minimum.
Ghana’s fuel pricing regime is often influenced by global oil prices, exchange rates, taxes, and distribution margins. While oil marketing companies can compete on price, the NPA sets floor prices to limit undercutting that could threaten supply reliability or lead to market exits.
The debate comes as government promotes a night-time economy strategy aimed at extending commercial activity beyond traditional hours, the 24-hour economy. With transport and energy costs seen as key constraints, any sustained reduction in fuel prices would likely require either lower input costs or regulatory adjustments, rather than voluntary discounts that fall below approved thresholds.
For GOIL, adherence to regulatory pricing is also framed as a governance issue. Bawa’s remarks suggest resistance among established players to proposals they see as headline-driven rather than commercially or regulatorily grounded.
Whether the NPA will consider reviewing overnight pricing structures remains unclear. For now, the regulator’s floor price of GH¢9.80 per litre sets the lower bound, leaving little room for the GH¢9.50 target proposed by Star Oil without formal approval.
