The National Petroleum Authority (NPA) has introduced a new price floor for petroleum products, effective from February 16 to 28, 2025. The regulation sets a minimum price of GH₵12.56 per liter for petrol, GH₵13.45 per liter for diesel, and GH₵14.26 per kilogram for Liquefied Petroleum Gas (LPG) ¹.
This move aims to prevent price distortions, ensure market stability, and promote transparency within the downstream petroleum sector. The NPA has urged Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to comply with the minimum price, warning that non-compliance may result in regulatory sanctions.
The price floor is aligned with the Petroleum Pricing Guidelines, which seeks to promote sustainability in the fuel market. However, it’s worth noting that the announced prices exclude premiums charged by International Oil Trading Companies (IOTCs) and the operating margins of Bulk Import, Distribution, and Export Companies (BIDECs).
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, ultimately benefiting consumers and ensuring fair business practices.
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.