The National Petroleum Authority (NPA) has introduced a new price floor for petroleum products, effective from February 16 to 28, 2025, as part of efforts to stabilize the downstream petroleum sector.
In a directive issued to Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs), the NPA mandated strict adherence to the newly established minimum prices. Petrol and diesel are now set at a baseline price of GH₵12.56 ($0.81) and GH₵13.45 ($0.87) per liter, respectively, while Liquefied Petroleum Gas (LPG) will be sold at no less than GH₵14.26 ($0.92) per kilogram.
The move aims to prevent price undercutting and ensure fair competition in the sector. Companies that fail to comply with the directive risk regulatory sanctions from the NPA.
According to the NPA, the initiative aligns with the Petroleum Pricing Guidelines, designed to enhance transparency and sustainability within the market. However, the price floor excludes premiums charged by International Oil Trading Companies (IOTCs) and the operational margins of Bulk Import, Distribution, and Export Companies (BIDECs).
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Additionally, marketing and dealer margins for OMCs and LPGMCs will remain independently determined under the existing price deregulation framework.
Despite these exclusions, industry analysts believe the introduction of a price floor will mitigate unhealthy competition while ensuring price predictability. The policy is expected to foster a more stable pricing structure, ultimately benefiting both consumers and businesses.
While the government remains committed to a deregulated market, the new regulation seeks to balance profitability for fuel companies with consumer protection, reinforcing fair market practices in the petroleum sector.
