So if bulk oil distribution companies say they are not responsible for the recent daily increases in fuel prices, who is actually driving these increases at the pumps?

Good afternoon and thanks for the opportunity.

So as you rightly stated, the BDCs are able to supply to these OMCs twice every month.

And so what we all know is that prices who are just at the first bumps twice a month, that is the first pricing window or the second pricing window.

We've all seen what has happened in the first pricing window of August.

And so what we are anticipating is that the second pricing window of August, there will be some reduction of prices of petroleum products at the virus pump.

That is what we are all anticipating.

What are the key factors that should determine fuel prices in Ghana right now? International crude oil prices, the city dollar exchange rate, taxes or margins across the supply chain?

Mm.

More or less, uh, you want to find out why they are doing that.

But they are doing that in comparison to GOIL because they've seen that their main competitor, which is GOIL, is selling above the price that they are giving to the consumer.

And so you see that the one who is driving these major daily price increases or adjustment is that of Star Oil.

They will give you the explanation that because they reduced their price, they've seen a lot of people buying from them.

And so their stock margins, or let me say their stock level that they anticipated to keep for that pricing window, is going to be depleted within the shortest period of time.

And when it's going to be depleted, they also have to find out what is the average price on the international market where they offtake their petroleum products from.

Mm.

Mm.

More or less, uh, you want to find out why they are doing that.

But they are doing that in comparison to GOIL because they've seen that their main competitor, which is GOIL, is selling above the price that they are giving to the consumer.

And so you see that the one who is driving these major daily price increases or adjustment is that of Star Oil.

They will give you the explanation that because they reduced their price, they've seen a lot of people buying from them.

And so their stock margins, or let me say their stock level that they anticipated to keep for that pricing window, is going to be depleted within the shortest period of time.

And when it's going to be depleted, they also have to find out what is the average price on the international market where they offtake their petroleum products from.

Mm.

Mm.

More or less, uh, you want to find out why they are doing that.

But they are doing that in comparison to Goil, because they've seen that their main competitor, which is Goil, is selling above the price that they are giving to the consumer.

And so you see that the one who is driving this major daily price increases or adjustment is that of Star Oil.

They'll give you the explanation that because they reduced their price, they've seen a lot of people buying from them, and so their stock margins, or let me say their stock level that they anticipated to keep for that pricing window is going to be depleted within the shortest period of time.

And when it's going to be depleted, they also have to find out what is the average price on the international market where they offtake their petroleum products from.

What is the price on the international market? Is it increasing? If it is increasing, then they want to adjust it so that they'll be able to, uh, be able to, uh, refill, or let me say have the same stock as the price were in the previous period.

Mm.

So

what everybody is looking out for is what can I be able to sell at in that plus some margins above the price floor.

Now, the two major competitors, that is the Star Oil and the Goyle, you realize that regarding petrol, Goyle was selling around 15.99. That is almost 16 Ghana cities.

Now, Star Oil was selling around 14.5 Ghana cities.

That is 14.50 Ghana cities.

Now, this more or less has driven a lot of, let me say, the motorists to go and be buying from Star Oil.

Now, the Star Oil, their argument is that they are trying to save the consumer.

What are the key factors that should determine fuel prices in Ghana right now? International crude oil prices, the city dollar exchange rate, taxes or margins across the supply chain?

So if bulk oil distribution companies say they are not responsible for the recent daily increases in fuel prices, who is actually driving these increases at the pumps?

Good afternoon and thanks for the opportunity.

So as you rightly stated, the BDCs are able to supply to these OMCs twice every month.

And so what we all know is that prices who are just at the first bumps twice a month, that is the first pricing window or the second pricing window.

we've all seen what has happened in the first pricing window of august and so what we are anticipating is that the second pricing window of august there will be some reduction of prices of petrol products at the virus pump that is what we are all anticipating but what is happening right now is that you wake up and then the next day the an omc is adjusting their prices uh definitely we will have to now resort to the mpa but for the reasons why these oms are doing that it's purely based on competition and then the other reason is because of stocks now let me explain this so we have a lot of oms the npa has been able to come out with a price floor that below it it is illegal to sell so what everybody is looking out for is what can i be able to sell at enough plus some margins above the price floor now the two major competitors that is a star oil and a girl you realize that regarding petrol uh gold was selling around 15.99 that is almost 16 ghana cities now star oil was selling around 14.5 ghana city that is 14.50 cannabis cities now this more or less has uh driven a lot of uh let me say the motorists to go and be buying from star oil now the the style their argument is that they are trying to save the consumer so they want the consumer to have some warfare That is a good thing.

But when they were doing that, they also have to look at their profit margins.

And so knowing that there is going to be a lot of, let me say, drive towards their station, they decided to adjust it on a daily basis.

What are the key factors that should determine fuel prices in Ghana right now? International crude oil prices, the city dollar exchange rate, taxes or margins across the supply chain?

So

what everybody's looking out for is what can I be able to sell at either plus some margins above the price floor.

Now, the two major competitors, that is a Star Oil and a Goyle, you realize that regarding petrol, gold was selling around 15.99. That is almost 16 Ghana cities.

Now, Star Oil was selling around 14.5 Ghana cities.

That is 14.50 Ghana cities.

Now, this more or less has driven a lot of, let me say, the motorists to go and be buying from Star Oil.

Now, the Star Oil, their argument is that they are trying to save the consumer.

What are the key factors that should determine fuel prices in Ghana right now? International crude oil prices, the city dollar exchange rate, taxes or margins across the supply chain?