The National Petroleum Authority (NPA) has implemented a new price floor for petroleum products during the second pricing window of February, mandating that Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) strictly adhere to the established minimum prices.
Effective from February 16 to 28, 2025, the directive prohibits the sale of fuel below the set thresholds, with violators facing potential sanctions from the regulator. The price floor for petrol has been fixed at GHȼ12.56 per litre, diesel at GHȼ13.45 per litre, and LPG at GHȼ14.26 per kilogram.
This measure is in line with the Petroleum Pricing Guidelines, which aim to promote stability in the downstream petroleum sector. However, the newly introduced price floors do not include premiums charged by International Oil Trading Companies (IOTCs), operating margins of Bulk Import, Distribution, and Export Companies (BIDECs), or the marketing and dealer margins of OMCs and LPGMCs. These cost components will continue to be determined independently by the companies, as per the country’s price deregulation policy.
The NPA’s enforcement of the price floor is designed to curb price undercutting among industry players, a practice that could disrupt market stability. By setting these minimum prices, the NPA seeks to ensure a fair and competitive environment while safeguarding the interests of consumers and businesses alike.
