The National Petroleum Authority (NPA) has announced a new price floor for petroleum products, for the second pricing window of February, 2025.
The regulation, which takes effect from 16th to 28th February 2025, has petrol and diesel being 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.
The measure aims to prevent price distortions and ensure market stability within the downstream petroleum sector.
Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) have been urged to comply strictly with the minimum price set for fuel sales with 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.
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.
A Business Desk Report