NPA sets new price floor for petroleum products

This directive requires Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to comply strictly with the minimum price set for fuel sales.

The measure aims to prevent price distortions and ensure market stability within the downstream petroleum sector.

The regulation, which takes effect from 16th to 28th February 2025, prohibits any company from selling fuel below the designated price threshold. Petrol and diesel have been priced at a minimum of GH₵12.56 and GH₵13.45 per litre, respectively, while Liquefied Petroleum Gas (LPG) has been fixed at GH₵14.26 per kilogram.

Companies found breaching this directive risk facing regulatory sanctions from the NPA.

According to the NPA, the initiative aligns with the Petroleum Pricing Guidelines, designed to promote transparency and sustainability in the fuel market.

However, the announced price floors exclude premiums charged by International Oil Trading Companies (IOTCs) and the operating margins of Bulk Import, Distribution, and Export Companies (BIDECs).

Additionally, marketing and dealer margins for OMCs and LPGMCs remain subject to independent determination under the country’s price deregulation framework.

Despite these exclusions, the introduction of a price floor is expected to curb unhealthy competition and undercutting practices among industry players.

By enforcing a minimum price, the NPA seeks to create a more predictable and balanced pricing structure, which will ultimately benefit consumers and ensure fair business practices within the sector.

The new directive reinforces the government’s commitment to maintaining a stable petroleum market while allowing room for fair competition.

With deregulation still in place, companies retain the flexibility to set their prices above the stipulated floor, ensuring profitability while safeguarding the interests of consumers and stakeholders alike.