The National Petroleum Authority (NPA) has initiated the enforcement of a price floor for petroleum products, setting the minimum price for petrol at ¢13.2 and diesel at ¢13.7.
Effective from April 16 to April 30, 2024, this move is part of the NPA’s new pricing guidelines aimed at curbing price undercutting within the industry.
In a circular issued to Oil Marketing Companies (OMCs) and Petroleum Service Providers (PSPs), the NPA emphasized strict compliance with the new pricing regulations, including a minimum price of ¢10.52 for a kilogram of Liquefied Petroleum Gas (LPG).
The implementation of the price floor is driven by the NPA’s goal to maintain industry stability amidst concerns of undercutting.
While some stakeholders express opposition, citing the need for a price ceiling and concerns about market readiness, the NPA asserts that the initiative is a result of thorough consultation and forms part of amended pricing guidelines introduced on April 1, 2024.
