Under the current deregulated framework, companies have the flexibility to set their prices above the prescribed minimum, ensuring profitability while also protecting the interests of consumers and other stakeholders.
By implementing a price floor, the NPA aims to foster a more predictable and balanced pricing structure that benefits consumers and promotes fair business practices across the sector.
This new directive underscores the government’s dedication to maintaining stability in the petroleum market while encouraging fair competition. According to the NPA, the initiative is in line with the Petroleum Pricing Guidelines, which are designed to ensure transparency and sustainability within the fuel market.
It’s important to note that the price floors do not include premiums charged by International Oil Trading Companies (IOTCs) or the operating margins of Bulk Import, Distribution, and Export Companies (BIDECs). Additionally, marketing and dealer margins for Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) will continue to be determined independently under the country’s price deregulation policy.
Despite these exclusions, the introduction of the price floor is expected to curb unhealthy competition and undercutting practices within the industry. The new regulation requires OMCs and LPGMCs to comply with the minimum fuel prices set by the NPA.
The goal of this measure is to prevent price distortions and ensure market stability in the downstream petroleum sector. The regulation will take effect from 16th to 28th February 2025, and companies are prohibited from selling fuel below the set price thresholds. Petrol and diesel prices have been set at a minimum of GH₵12.56 and GH₵13.45 per litre, respectively, while the price for Liquefied Petroleum Gas (LPG) is GH₵14.26 per kilogram.
Any company found violating this directive could face regulatory sanctions from the NPA. The new price floor is effective for the second pricing window of February.
