With effect from February’s second pricing window, the National Petroleum Authority (NPA) has set a new price floor for petroleum products.
The minimum price set for fuel sales must be strictly adhered to by Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) under this directive.
The goal of the measure is to maintain market stability and stop price distortions in the downstream petroleum industry.
The rule, which is in force from February 16 to February 28, 2025, forbids any business from selling fuel for less than the specified price.
Liquefied petroleum gas (LPG) has been set at GH₵14.26 per kilogram, while gasoline and diesel have minimum prices of GH₵12.56 and GH₵13.45 per liter, respectively.
Businesses that violate this directive run the risk of receiving regulatory penalties from the NPA.
The NPA says the program is in line with the Petroleum Pricing Guidelines, which are intended to encourage sustainability and openness in the fuel industry.
However, the operating margins of Bulk Import, Distribution, and Export Companies (BIDECs) and premiums levied by International Oil Trading Companies (IOTCs) are not included in the price floors that have been announced.
Under the nation’s framework for price deregulation, OMC and LPGMC marketing and dealer margins are still subject to independent determination.
The implementation of a price floor is anticipated to reduce unhealthful competition and undercutting tactics among industry participants, notwithstanding these exclusions.
The NPA aims to establish a more stable and equitable pricing structure by imposing a minimum price, which will eventually help consumers and guarantee ethical business practices in the industry.
The government’s determination to preserve a stable petroleum market while permitting fair competition is reaffirmed by the new directive.
Since deregulation is still in effect, businesses are still able to set prices above the floor, which ensures profitability while protecting the interests of stakeholders and customers alike.
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