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NPA to set price floor for petroleum products

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The National Petroleum Authority (NPA), in accordance with its new guidelines, will from Monday, April 1, 2024, set the benchmark for the pricing of petroleum products in Ghana.

The move is to prevent industry players including the Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing (LPGMC) entities from pricing below that value.

The Authority, in a letter signed by Curtis Perry Okudzato, the Deputy Chief Executive of the NPA, to all industry players, said the National Petroleum Authority has counselled all petroleum service providers to strictly adhere with all the dictates of the Amended Pricing Guidelines.

The Amended Pricing Guidelines is a pricing regulatory policy document by the National Petroleum Authority which would be operationalised from April 1, 2024.

The policy states that the NPA will set and communicate price floors for the deregulated products for each pricing window, which is the 1st to 15th of each month and 16th to 30th of each month.

The new rule is to address concerns raised and allegations on unethical price undercutting in the industry by some oil marketing companies in the country.

The National Petroleum Authority promised that it will periodically furnish Petroleum Service Providers with the full pricing formula, stating the specific taxes, levies, and margins applicable for each pricing window in excel format.

The Amendment to Petroleum Products Pricing Guidelines follows the establishment of the committee by the National Petroleum Authority to review the Pricing De-Regulation Policy which took off in June 2015.

 

Source: www.ghanaweb.com

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