Financial analyst Senyo Hosi has waded into the brewing fuel price war within Ghana’s petroleum downstream sector, asserting that the recent public firestorm surrounding Star Oil CEO Philip Tieku is the result of a massive misunderstanding.
Mr Hosi revealed that his private consultations with Mr Tieku indicate the CEO’s remarks were not a radical call to dismantle the industry’s regulatory bedrock, but rather a plea for a more agile response to currency fluctuations.
The core of the controversy stems from the National Petroleum Authority’s (NPA) Petroleum Price Floor Programme, introduced in April 2024 to prevent predatory pricing by setting a minimum retail price every two weeks.
However, Mr Hosi argued that this 14-day window creates a rigid barrier that traps potential savings when the Ghanaian Cedi performs well.
“I have spoken to Philip. I want to believe he has been misunderstood. What he wanted to say… was that there are intertemporal opportunities to respond to the market—to price changes. For example, last year, we had FX moving down quite quickly. When it happens so quickly within a week, your prices should also be able to adjust if there’s a benefit, because there’s a benefit,” Mr Hosi explained on Channel One on Saturday, January 24, 2026.
Because Bulk Import, Distribution, and Export Companies (BIDECs) price their products in US Dollars, the exchange rate is the primary driver of what Ghanaians pay at the pump.
Mr Hosi noted that the current floor mechanism effectively prevents companies from passing on currency-driven mid-window savings to the public.
“The BDCs’ price is ultimately in dollars; they convert it into cedis at an exchange rate. So if the FX rate has come down, the price floor is for two weeks. All right? So in between time, if there’s any benefit that could have gone to consumers, they cannot extend it. That is the matter that I think Philip was referring to.”
The debate reached a boiling point earlier this week when Star Oil suspended its membership in the Chamber of Oil Marketing Companies (COMAC), accusing the association of failing to represent its views fairly.
Despite allegations from some quarters that Star Oil was attempting to undercut the market unfairly, Mr Hosi was quick to defend the company’s track record.
“Look, take out the price floor. Would he have gone down? He has a price floor today. He hasn’t sold yet below the price floor or even matched the price floor. Not for once,” Hosi stressed, debunking claims that the market leader had violated regulatory limits.
The fallout has exposed a deep rift in the industry.
While the National Petroleum Authority (NPA) and COMAC maintain that the floor is a critical safeguard against predatory pricing and tax evasion, groups like the Africa Centre for Energy Policy (ACEP) have branded the policy a “lazy solution” that punishes efficient operators.
As the industry’s number one player, Star Oil’s stance—as clarified by Mr Hosi—suggests that the debate isn’t about whether to regulate, but about how to ensure that regulation does not become an unintended tax on the Ghanaian consumer during periods of economic recovery.
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
