The National Petroleum Authority (NPA) has introduced a new price floor for the second pricing window, effective from October 16 to 31, 2024. The set prices are GH₵12.73 for petrol and GH₵13.43 for diesel, meaning that no oil marketing company is permitted to sell below these rates.
In a notification sent to Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas (LPG) marketers, the NPA urged compliance with these established price floors. The authority clarified that these prices do not include the premiums charged by International Oil Trading Companies (IOTCs) or the operating margins of Bulk Oil Distribution Companies (BIDECs), as well as the margins for marketers and dealers associated with OMCs and LPG marketers. These additional costs will be determined independently by the respective companies under the Price Deregulation Policy.
The introduction of the price floor mechanism aims to curb price undercutting within the industry, a practice the NPA warns could jeopardize industry stability if left unchecked. Recently, the NPA announced the suspension of the Price Floor programme specifically for Bulk Oil Distribution Companies due to concerns raised by stakeholders in that sector. However, the initiative will continue for oil marketing companies.
The price floor policy has faced criticism from certain industry players, who label it as anti-free market. Despite this, the NPA maintains that the rollout of the price floor policy was based on consultations within the industry, as well as recommendations from stakeholders on necessary measures to address price undercutting.
