Pump Prices have reduced slightly at various filing stations although international crude prices have begun picking up gradually.
On a visit by the Ghana Talks Business to some major filing stations in the capital, it appears that fuel prices at the pump have reduced by between 10 to 20 pesewas per barrel. Some OMCs have also maintained the old prices since our last report about two weeks ago.
However, the Institute of Energy Security has hinted on a possible increase in pump prices soon, due to increases in global oil prices.
The international oil market seems to be recovering from the shocks that it faced due to the outbreak of the Covid-19 pandemic which resulted in demand going down drastically a few months ago.
Brent Crude is currently trading at $35.30 while WTI is selling at $33.53 per barrel.
Prices in Ghana
But Pump Prices in Ghana have dropped, albeit marginally, since the last pricing window over two weeks ago, which was around May 10, 2020.
Below is a table containing the latest Pump Prices at filling stations of the top six OMC brands in the country
The table depicts slight reduction in pump prices as compared to prices listed on May 10th. However, there are other brands which are not captured on the table, that are selling their fuel at cheaper prices. For instance, Goodness is offering Petrol at GHC3.85 and Diesel at GHC3.85, whereas Frimps oil is selling at Petrol 3.99 and Diesel 4.10.
Goil, Total and Shell are the most popular filing stations in the country with branches dotted in every nook and cranny of the country. It appears Puma and Engen oil need to improve branch network in the capital.
Buying fuel, and why the brand matters
What informs the decisions for consumers to stick to a particular Oil Marketing Company (OMC)? Brand loyalty makes customers patronize fuel from preferred choices as compared to others with relatively low prices?
There are several factors that account for every consumer’s decision to stay glued to a particular pump for years.
In an earlier interview, the Executive Secretary of COPEC explained that a number of factors inform the decision of a driver to choose one OMC over the others even if their prices are on the high.
Enumerating the factors that account for the ‘addiction’ Duncan Amoah said Perception plays a key role, and that if an individual perceives an OMC to be selling quality fuel, they see no reason buying from other OMCs.
Loyalty, Mr Amoah said, is also another factor, explaining that if a consumer keeps buying from an OMC for overtime and still has his or her engine in good shape, the person turns to stick to that particular brand.
Quality of service of product and service makes consumers maintain or keep buying from top brands in the Petroleum sector.
It is the case that top OMCs, like Goil, Total and Shell, mix their fuel with additives to enhance the quality of fuel and hence the performance of engines.
Those additives enhance the quality of fuel which consumers prefer as it helps them to save money on fuel and prolong their engines.
By Salifu B.B. Moro